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DOUBLE-ENTRY  IMfrKEEPING, 

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BY     TEE     A  T  T  L  I  C  A  T  I  O  X     OF     AN 

INFALLIBLE    11ULE    FOR    JOURNALIZING; 

CALCT'LATEO  TO  INSURE  A  COMPLETE  KNOWLEDGE  OF  THE     ^** 

THEORY  AND  PRACTICE  OF  ACCOUNTS: 


BEING   A   SERIES    OF   WELL-SELECTED    MERCANTILE    TRANSACTIONS,    SO   ARRANGED   AS   TO 

FORM   A   COMPLETE    COURSE    OF    PRACTICE    AND    INSTRUCTION;     DESIGNED   FOR 

THE   USE  OF  SCHOOLS  AND   COUNTING-IIOUSES  IN  THE   UNITED   STATES ; 

INCLUDING   NUMEROUS   EXAMPLES   OF 


MEECANT^yyee^mjLATioNS; 


SHOWING    IEIl\KJftIO»    BETWEEN     TUB     ACCOUNT    BOOKS. 


By   C.   C.   MARSH,   Accountant, 

AtrrnoB  of  "the  theory  and  practice  of  bank  book-keeping  and  joint-stock  accounts;" 
"single-entry  book-keeping  improved,"  etc. 


ENLARGED  AND  IMPROVED  1358. 

NEW  YORK : 
D.     APPLETON     AND     COMPANY, 

448   AND    445    BROADWAY. 

M.DCCC.LX. 


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Eatered  according  to  Act  of  Congress,  in  the  year  1858, 

By  C.  C.  MARSH, 

in  the  Clerk's  Office  of  the  District  Court  of  the  United  States,  in  and  for  the  Southern 

District  of  New  York. 


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UME    IS    RESPECTFULLY 


DEDICATED 


CLERKS, 


THE   FUTURE   jftn&HANTS-OF   THE    UNITED    STATES, 


>whose  integrity  and  assiduity  in  the  performance  of  their  duties,  have 
long  been  witnessed  and  admired 

•  By  the  Author. 


W^^Z^^xi^C^ 


Diagram Frontispiece. 

Directions  to  Teachers page  68-69 

Introduction 9 

Definitions  of  Account  Books 10 

Note  on  the  Day  Book 72 

Note  on  the  Journal 94 

Note  on  the  Leger 126 

Note  on  the  Cash  Book 173 

Infallible  Rule  J'or  Journalizing 12 

Opening  Books 13 

Business  of  January — 
Entries  relating  to — Entering  into  Part- 
nership— Advancing  Capital — Assuming 
Partners'  Debts — Simple  Purchases  and 
Sales — Simple  Receipts  and  Payments — 
Loans — Loans  on  Notes  and  Interest — Re- 
ceiving and   Delivering   Notes — Paying 

our  Notes 13 

Elucidations  of  the  Journal  Entries 13-21 

Posting — Posting  the  Entries  of  January. 21-26 

Trial  Balances — What  they  prove 26 

Trial  Balance  of  January 25 

Trial  Balance  of  February 3.5 

Trial  Balance  of  March 41 

Trial  Balance  of  April 46 

Business  of  February — 
Entries  relating  to — Paying  Notes  before 
due  —  Petty  Expenses  —  Consigning  — 
Shipping  for  account  of  others — Failure 
and  Compromise — Importing  Goods — Ac- 
cepting Drafts — Drafts  or  orders  at  Sight 
— Buying  Vessels — Drawing  Bills  of  Ex- 
change —  Bartering  —  Accommodation 
Notes  —  Discounting    Notes  —  Insuring 

Shipments  and  Vessels 20 

Elucidations  of  the  Journal  Entries 26-35 

Business  of  March — 
Entries  relating  to — Delivering  per  Order 
— Receiving  Consignments — Paying  Char- 
ges on  Consignments — Selling  Consign- 
ments— Selling  at  Auction  —  Collecting 
Notes  and  Acceptances — Receiving  Notes 
with  Interest — Allowing  for  damages  in 
in  Sales — Paying  Acceptances — Closing 
Consignments — Rendering  Account  Sales 
— Receiving  Account  Sales  —  Buying  in 
Joint  Account — Selling  in  Joint  Account 
— Receiving  our  Note  before  due— Paying 
Money  to  a  Partner — Buying  Bills  of  Ex- 
change— Closing  Account  of  Sales  in 
Joint  Account — Rendering  Account  Sales 

of  Merchandise  in  Joint  Account 36 

Elucidations  of  the  Journal  Entries 36-41 

Business  of  April — 
Entries  relating  to  —  Paying  Rent — Re- 
ceiving Returns  —  Receiving  Consign- 
ments free  of  Charges — Selling  on  Com- 
mission— Renewing  Notes — Allowing  to 
ourselves  for  damages — Shipping  on  our 
Account  —  Closing  Consignment  —  Buy- 
ing in  Joint  Account — Exchanging  uncur- 
rent  Money — Renewing  our  Notes  — 
Transferring  Purchase  at  Auction — Buy- 
ing Tickets— Receiving  Account  Sales  with 
Returns — Taking  a  Consignment  to  our 
account; — Receiving  Freights  of  our  Ves- 
sel— Drafts  remitted  us  for  Collection — 
Buying  Drafts  per  Order  and  for  Remit- 


tance—Investing Funds  in  Drafts — Buy- 
ing Specie — Allowing  Interest  on  Part- 
ner's Capital — Rendering  Accounts  Cur- 
rent— Closing  Accounts — Correcting  Er- 
rors. &c,  &c 42 

Elucidations  of  the  Journal  Entries 42-47 

Balance  Sheets 50 

Balance  Sheet  of  April  30,  1858 49 

Explanation  of  the  Balance  Sheet 48 

Closing  a  Balance  Sheet 53 

Closing  the  Books 53 

Explanations  of  the  closing  Entries 53 

Opening  Books 54 

Business  of  May — 
Relating  to— Clerks'  Salaries — Delivering 
Note  for  Debt  due — Investing  Money  in 
Stocks — Receiving  Account  Sales — Re- 
ceiving Account  Current  with  balance  of 
Interest — Receiving  Draft  for  balance  of 
Account; — Delivering  Note  on  Open  Poli- 
cy— Shipments  in  Joint  Account — Month- 
ly Entry  of  Purchases — Monthly  Entry  of 
Sales — Monthly  Entry  of  Cash  received — 
Monthly  Entry  of  Cash  paid — Correcting 

Errors 56 

Elucidations  of  the  Journal  Entries 56-59 

Explanations  of  the  Monthly  Entries 57 

Correcting  Errors 45 

200  Questions  and  Answers,  relating  to — 

.  Opening  Books 58-59 

Conducting  Books 59-65 

Closing  Books 65-67 

Day  Book — containing  150  Business  Trans- 
actions       71 

Journal — containing  120  Entries 111-93 

Leger — containing  40  Accounts 125 

Cash  Book — containing  100  Entries 173 

Invoice  Book — containing  6  Entries 181 

Sales  Book — containing  5  Entries 185 

Commission  Sales  Book — containing  25  En- 
tries   189 

Bill  Book — containing  40  Entries i  95 

Mercantile  Forms — 
Receipts — Orders  — Promissory  Notes — 

Drafts— Bills  of  Exchange 202-203 

Accounts  of  Sales 204-205 

Accounts  Current  without  Interest 206 

Accounts  Curreut  with  Interest 206-213 

Accounts  Current  averaged 214-215 

Letters — 

Circular 217 

On  Ordering  Goods — 218 

On  Consigning  Goods ™ 219 

On  rendering  Account  Sales 220 

On  drawing  Drafts 220 

On  rendering  Accounts  Current 220 

Mercantile  Calculations — 

Discount  and  Interest 221 

Common  Divisor  of  6000 — how  found. . .  223 

Commission  and  Insurance 223-224 

Exchanges 

English,  French,  &c 224-227 

Equation  of  Payments — 

Averaging  Bills 227 

Averaging  Account  Sales 228 

Averaging  Accounts 229 

Averaging  Balances 230-231 

Profits  and  Losses 232 


PRETFACE. 


^  thei 

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cah 


The  increase  of  the  trade  and  Commerce  of  the  United  States,  consequent  on 
the  increase  of  population,  manufactories,  and  Agriculture,  and  the  universal 
confidence  reposed  in  our  political  institutions,  have  called  into  requisition  renewed 
efforts  in  every  department  of  science  and  literature.  Twenty  years  ago,  when 
the  book  which  is  the  basis  of  this,  was  first  published,  works  on  book-keeping 
were  not  as  common,  nor  so  much  in  demand,  as  they  are  at  present.  Then,  two 
were  supplicating  for  public  patronage  ;  now,  more  than  a  dozen  contend  for 
public  favor  :  then,  book-keeping  was  little  thought  of  as  a  branch  of  education ; 
now,  great  exertions  are  made  to  render  a  practical  as  well  as  theoretical  knowl- 
edge of  the  science  attainable  by  study  and  instruction. 

There  are,  perhaps,  no  people  on  the  earth  who  have  more  necessity  for  skill 
and  method  in  arranging  accounts,  than  those  of  the  United  States.  Here  a 
most  wonderful  credit  system  prevails.  It  is  infused  throughout  all  kinds  of  busi- 
ness, from  the  largest  commercial  establishment  to  the  smallest  retail  shop — from 
the  emporiums  of  the  cities  and  towns  to  the  remotest  trading  house  on  the  con- 
fines of  civilization.  All  classes  of  society,  and  people  of  all  occupations,  parti- 
cipate in  it — the  farmer,  the  mechanic,  the  rich  man  and  the  poor.  It  animates 
the  adventurer,  inspires  the  enterprising,  encourages  the  industrious,  and  estab- 
lishes the  emigrant  in  the  west.  It  fortifies  the  farmer  and  planter  for  a  year's 
toil,  and  transports  the  products  of  their  labor  to  a  market.  Such  a  system  of 
doing  business  is  as  much  the  offspring  of  confidence  and  good  will  in  man  toward 
his  fellow-man,  as  of  capital.  I  truly  believe  that  no  people  buy  as  much,  con- 
sume as  much,  and  pay  for  as  much,  as  the  people  of  these  States.  No  one  here 
thinks  of  hoarding  money,  and  few  are  satisfied  to  live  as  they  have  lived,  or  to 
go  on  as  they  began  ;  but  as  soon  as  they  possess  any  means  above  their  imme- 
diate necessities,  everything  about  them  is  improved,  enlarged,  and  even  beauti- 
fied. Thus  it  would  seem  that  credit  and  capital  are  on  a  par,  equally  active  and 
never  at  rest. 

Book-keeping  is  so  extensively  required,  that  it  becomes  difficult  to  say  who 
may  not  stand  in  need  of  the  knowledge  embraced  under  its  mame.  No  one, 
however,  who  has  even  distant  expectations  of  being  engaged  or  interested  in 
mercantile  affairs,  manufactories,  or  in  joint-stock  companies,  ought  to  omit  to 
make  that  science  a  study.  By  this  I  do  not  mean  that  all  should  or  can  become 
book-keepers,  but  that  those  engaged  in  any  kind  of  business,  who  possess  capi- 
tal or  who  control  it,  and  those  who  make  a  profession  of  the  law,  should  make 
themselves  acquainted  with  its  principles  as  a  science,  with  the  names  and  pur- 
poses of  the  common  account  books,  with  a  systematic  method  of  stating  ac- 
counts, and  with  the  various  calculations  belonging  to  them.  Unless  they  do 
this,  they  can  not  read  an  account,  much  less  understand  one.  Doct.  Johnson 
says,  in  his  preface  to  Ralt's  Dictionary  of  Commerce,  "Let  no  man  enter  into  a 
large  business  while  he  is  ignorant  of  regulating  accounts  ;  never  let  him  imagine 
that  any  degree  of  natural  abilities  will  supply  this  deficiency  or  preserve  multi- 


PREFACE. 

plicity  of  affairs  from  inextricable  confusion."  Doct.  Johnson  was  no  book-keeper, 
but  he  knew  enough  of  the  nature  of  accounts  to  convince  him  that  book-keep- 
ing was  a  science  that  required  to  be  studied  before  it  could  be  understood,  and 
that  the  knowledge  acquired  by  such  study  would  be  of  inestimable  value  to  the 
man  engaged  in  business. 

It  may  not  become  the  author  to  descant  on  the  merits  of  other  works  on  the 
subject — that  he  thinks  belongs  to  those  who  are  more  likely  to  look  on  all  with 
an  impartial  eye  ;  but  he  may,  he  presumes,  without  offense  to  any,  give  his 
views  on  some  of  the  different  methods  of  teaching  book-keeping.  One  of  the 
more  common  presents  the  science  to  the  student  in  such  a  form  that  he  has  no- 
thing to  do  but  to  copy  and  commit  to  memory ;  it  furnishes  him  with  a  volume 
filled  with  account  books  and  general  rules,  and  appears  to  take  for  granted  that 
to  see  the  entries  and  operations,  is  to  understand  them. 

Another  essays  to  teach  the  science  by  an  ingenious  way  of  ruling  the  books, 
and  by  designating  for  what  purpose  are  the  different  columns.  This  plan  supposes 
that  every  one  knows  who  are  the  debtors  and  creditors,  what  is  to  be  charged 
and  what  credited,  and  therefore  furnishes  no  instruction  in  reference  thereto. 

Another  proposes  to  accomplish  the  object  by  teaching  a  theory  and  practice 
separately  ;  by  this  plan,  the  pupil  begins  the  study  at  the  Leger,  and  goes  back- 
ward. In  this  method,  I  think  it  is  asserted  that  you  might  as  well  head  ac- 
counts in  the  Leger  with  the  words  "Red"  and  "Black,"  as  to  head  them  with 
those  of  Dr.  and  Or. ;  indicating  that  these  words  have  not  their  usual  signifi- 
cations when  applied  to  book-keeping. 

But  the  worst  of  all  is,  that  these  and  most  other  methods  teach  that  one  ac- 
count is  debtor  to  some  other  account;  meaning  that  the  accounts  in  the  Leger  owe 
to  each  other.  Nothing,  in  my  mind,  can  be  more  absurd  than  this ;  for,  al- 
though things  may  owe  us,  and  we  may  owe  them,  they  can  not  owe  each  other. — 
This  is  an  error  which  relates  directly  to  the  theory,  and  contributes,  in  no  small 
degree,  to  render  the  science  inaccessible.  Such  a  method  of  teaching  leaves  the 
party  most  interested  entirely  out  of  the  business,  and  substitutes  incomprehensi- 
ble suppositions  for  simple  realities.  The  truth  is,  not  the  accounts,  but  the  ob- 
jects which  they  represent,  are  the  debtors ;  and  not  debtors  to  each  other,  but 
debtors  to  the  owner  of  the  books.  It  is  to  this  common  error  that  may  be  at- 
tributed the  deficiency  of  practical  instruction  in  this  branch. 

I  would  not  say  that  these  methods  are  so  bad  that  no  one  can  learn  by  them, 
but  that  it  is  my  humble  opinion  that  the  very  faults  and  errors  to  which  I  have 
referred,  have  given  rise  to  an  opinion  often  expressed,  viz.,  "  that  book-keeping 
can  not  be  learned  at  school." 

Book-keeping  by  double  entry  is  undoubtedly  a  science,  and  not  merely  a  col- 
lection of  forms  and  arbitrary  rules.  Every  operation  in  it  being  susceptible  of 
rational  exposition,  there  is  no  doubt  that  it  can  be  taught  with  much  better  ef- 
fect by  pursuing  a  course  more  in  accordance  with  the  modern  methods  of  teach- 
ing most  branches.  Arithmetic,  for  example,  is  much  better  taught  than  form- 
erly, because  it  is  more  taught  by  reasoning  and  less  by  rules.     The  modern  meth- 


PREFACE. 

od  of  teaching,  I  believe,  is  by  experiment  and  example,  rather  than  by  rule  and 
precept ;  in  it  the  practice  and  theory  are  united,  but  the  theory  follows,  not  pre- 
cedes, the  practice.  A  question  is  proposed,  the  operation  is  performed  and  ex- 
plained, and  then  follow  the  principle  and  rule.  This  is  the  natural  way  ;  and  in 
this  order,  if  I  mistake  not,  have  originated  all  the  sciences — first  the  fact  was 
discovered,  and  then  a  theory  was  made  to  account  for  it.  Facts  originate  theo- 
ry, and  not  theory  facts. 

This  book  does  not  profess  to  be  a  new  system  of  keeping  accounts,  but  an  im- 
proved and  more  efficacious  way  of  teaching  the  theory  and  practice  of  the  art. 
Teaching  book-keeping  does  not  consist  so  much  in  explanations  of  the  forms  and 
purposes  of  the  account  books,  as  in  expositions  of  mercantile  transactions.  To 
know  what  the  Cash  Book  is  for,  and  to  know  how  to  make  an  entry  in  it,  are 
very  different  things — quite  as  different  as  knowing  what  a  violin  is  for,  and  know- 
ing how  to  play  on  one.  The  object  should  be  to  teach  the  science,  and  not  mere- 
ly a  set  of  forms  of  account  books,  variable  at  the  will  of  the  book-keeper,  and 
varying  with  the  nature  of  the  business  to  be  recorded  in  them. 

Journalizing  is  the  scientific  part  of  book-keeping  ;  by  it  is  meant  the  correct 
determination  of  the  objects  and  persons  which,  in  business  transactions,  may  be 
our  true  debtors  and  creditors.  Without  the  skill  to  determine  these,  our  knowl- 
edge of  book-keeping  amounts  to  nothing.  No  variation  in  the  number,  the  forms, 
or  the  ruling  of  the  account  books,  can  afford  any  assistance  to  the  learner  in  this 
part  of  the  study.  It  is  in  this  part  of  the  science  I  claim  to  have  made  a  great 
improvement,  and  to  have  reduced  journalizing  to  a  simple  question  of  indebted- 
ness. In  most  of  the  methods  used,  many  rules  are  given  to  teach  to  journalize, 
or  to  distinguish  the  debtors  and  creditors  that  result  from  business  transactions. 
But  it  is  well  known  that  these  rules  are  all  liable  to  exceptions,  and  the  pupil 
encounters  as  much  difficulty  in  understanding  when  to  apply  a  rule  and  when  not, 
as  he  would  were  he  to  study  the  science  without  rules ;  that  is,  these  rules,  from 
their  variety  and  exceptions,  are  more  difficult  to  understand  and  apply,  than  the 
science  with  which  they  are  connected.  In  this  work,  the  all-important  part  of 
the  science  (journalizing,)  is  uniformly  explained  by  one  rule.  This»rule  is  sim- 
ple in  its  nature,  invariable  in  its  utility,  and  in  its  truth  self-evident.  It  is  a  rule 
that  directs  the  thoughts  of  the  pupil  to  the  real  merits  of  a  transaction — brings 
into  action  his  interested  feelings,  invests  his  mind  with  practical  ideas,  and  teach- 
es him  what  will  avail  him  in  the  business  world.  While  the  method  of  impart- 
ing a  knowledge  of  accounts  laid  down  in  this  work,  and  so  arranged  as  to  form 
a  course  of  practice  for  the  student  to  pass  through,  must,  in  the  author's  opinion, 
result  in  giving  him  a  better  practical  knowledge,  it  will  also  be  found  to  be  the 
easiest  on  which  to  study  or  to  teach. 

A  method  of  teaching  any  branch  which  encumbers  it  unnecessarily  with  rules, 
principles,  and  divisions,  makes  the  head  of  the  student  that  commits  them  to 
memory  a  mere  box  ;  while  the  more  modern  ( the  inductive,)  treats  the  pupil  as 
a  responsible  and  free  agent.  That  instruction  that  is  addressed  to,  and  exercises 
the  rational  faculties,  will  be  of  service  even  though  it  should  be  erroneous ;  for 


s 


PRE 


the  man  that  has  been  taught  to  use  arfl  to  depend  on  his  reason,  is  less  liable  to 
remain  in  error  should  he  be  in  it,  aim  less  to  get  in  when  he  is  out. 

The  forms  of  the  account  bpek^in  this  volume  accord  very  well  with  those  used 
in  the  United  States 


practice  of  the  science, 
which  are  sometimes  uss 
can  not  be  adopted  unl 
all  suitable  to  teach  fr( 
and  not  in  an  abbrevif 
nection  with  a  good  sj 


L^onsider  them  well  calculated  for  exemplifying  the 
rere  are,  it  is  true,  shorter  methods  of  keeping  books, 
by  experienced  book-keepers  ;  but  these  short  methods 
one  is  master  of  the  subject  as  a  science,  nor  are  they  at 
1 — for,  in  studying,  we  require  to  see  the  art  as  a  whole, 
id  form.  "When  the  science  is  well  understood,  in  con- 
cern or  set  of  forms  of  account  books,  there  will  be  no 
difficulty  in  understanding  any  variations  in  those  forms,  or  any  system  of  keep- 
ing books  by  double  entry. 

The  plan  of  the  book  is  this : — One  part  consists  of  a  set  of  account  books, 
filled  with  mercantile  transactions,  embracing  all  the  variety  likely  to  occur  in 
the  natural  course  of  business,  beginning  with  the  simplest  and  advancing  to  the 
more  complicated.  All  the  important  papers  and  calculations  required  by  those 
transactions  are  preserved  and  explained,  aud  bear  corresponding  dates,  in  the 
part  of  the  book  entitled  Forms  and  Calculations. 

The  number  of  transactions  composing  the  five  months'  business  embraced  in 
the  account  books,  is  about  one  hundred  and  fifty,  which,  extending  into  all  kinds 
of  business,  are  calculated  to  anticipate  most,  if  not  all,  the  cases  likely  to  occur, 
and  to  furnish  the  pupil  with  enough  practice  in  keeping  books  to  develop  the 
theory  and  to  make  him  a  book-keeper. 

The  first  part  of  the  book  ( about  sixty  pages,)  is  to  serve  as  the  teacher.  In 
this  part,  all  the  operations,  transactions,  and  entries,  are  fully  and  minutely  ex- 
plained ;  and  all  those  explanations  bear  dates  corresponding  with  the  matter  in 
the  account  books.  These  instructions  conduct  the  student,  like  a  teacher,  through 
a  set  of  books — attending  him  while  opening,  keeping,  balancing,  closing,  and  re- 
opening the  same,  and  in  making  his  trial  balances,  account  sales,  accounts  cur- 
rent, balance  sheets,  &c,  &c. 

My  first  work  on  this  subject,  written  many  years  since,. and  which  has  passed 
through  about  twenty  editions,  is  by  no  means  abrogated,  but  forms  the  basis  of 
this  publication.  It  is  re-written,  enlarged,  and  improved,  and  embraces  the  re- 
sult of  the  long  experience  of  the  author  as  an  accountant  and  teacher  of  book- 
keeping. I  have  preserved  all  the  most  appropriate  and  useful  examples  of  busi- 
ness, introduced  others,  and  omitted  those  deemed  too  complicated  to  be  of  prac- 
tical utility  to  the  pupil.  I  have  also  given  more  examples  in  mercantile  arith- 
metic, many  of  which  have  not  before  been  published.  The  entries  under  date 
of  May  30th  will  furnish  the  practical  book-keeper,  as  well  as  the  student,  with 
forms  for  the  making  up  of  what  are  called  monthly  entries. 

All  of  which  is  respectfully  submitted  to  the  patronage  of  the  public  by 

THE  AUTHOR. 

New  York,  October  1,  1858. 


THE     SCIENCE 

OF 

DOUBLE-EITRY  BOOK-K 

SIMPLIFIED. 


INTRODUC 

The  Science  of  Book-keeping  by  double  entry  teaches  to  record,  systematically 
and  free  from  error,  the  various  transactions  of  business  or  of  the  mercantile  pro- 
fession, so  that  the  merchant  may  know  his  pecuniary  situation,  be  able  to  sub- 
stantiate his  claims  and  protect  his  property,  and  at  dissolution  may  leave  behind 
him  such  evidence  as  will  enable  his  friends  to  understand  his  commercial  relations 
and  engagements,  and  to  wind  up  his  affairs  in  a  manner  satisfactory  to  all  par- 
ties concerned.  Book-keeping  by  double  entry  is  that  method  of  conducting  the 
records  of  business  and  monetary  affairs  so  that  they  will  balance  or  prove  them- 
selves beyond  a  reasonable  doubt ;  this  entitles  the  method  to  a  place  among  the 
sciences.  The  science  has  its  origin  in  the  condition  in  which  man  finds  himself 
placed,  of  owing  and  being  owed.  The  following  theoretical  principles  relating  to 
the  common  terms  debtor  and  creditor  are  established  by  the  practical  require- 
ments of  the  science. 

PRINCIPLES. 

1st,    All  that  owe  are  not  debtors,  those  alone  that  owe  us  are  debtors,  x 

2d,     All  that  are  owed  are  not  creditors,  those  alone  that  we  owe  are  creditors,, 

3d,      No  transaction  is  of  value  that  does  not  give  rise  to  a  debtor  or  creditor. 

4th,    Values  are  measured  in  accounts  by  the  common  terms  dollars  and  cents; 
as  weight  and  quantity  are  measured  by  the  terms  pound,  feet,  yards,  &c. 

5th,    The  terms  debtor  (  Dr. )  and  creditor  (  Cr. )  extend  in  their  application 
not  only  to  persons  and  parties,  but  apply  also  to  objects  and  causes. 

6th,     The  party  to  any  transaction  cannot  owe  without  being  owed,  and  can- 
not be  owed  without  owing. 

7  th,    The  sum  of  the  values  attached  to  the  debtors,  and  that  of  the  values 
attached  to  the  creditors,  must  equal  or  balance  at  all  times. 

To  weigh  a  business  transaction  in  the  mind,  to  comprehend  its  import  and  val- 
ue, to  perceive  its  points,  and  to  be  able  to  determine  on  the  true  debtors  and  cred- 
itors which  arise  therefrom,  and  to  affix  to  each  the  sum  it  justly  owes  or  is  owed, 
is  termed  journalizing  ;  in  this  consists  the  theory  of  the  science.  While  the  prac- 
tice, which  must  accord  with  the  theory,  requires  a  judicious  arrangement  of  the 
details  of  business,  appropriate  forms  of  account  books,  and  a  simple  and  clear 
style  in  stating  the  transactions. 

9 


10  INTRODUCTION. 

To  exhibit  with,  clearness  and  regularity  a  correct  and  continued  record  of  the 
mercantile  transactions  that  occur  between  ourselves  and  others,  we  deem  it  ne- 
cessary to  introduce  the  following  books : — 


1. 

INVOICE  BOOK, 

5. 

BILL  BOOK, 

■2. 

SALES  BOOK, 

6. 

DAY  BOOK, 

3. 

CASH  BOOK, 

1. 

JOURNAL, 

4. 

COMMISSION  SALES  BOOK. 

8. 

LEGER. 

Principal. 

Of  these  books,  the  Cash  Book,  Sales  Book,  Day  Book,  Journal,  and.  Leger, 
appear  to  be  indispensable  in  all  houses  ;  While  the  others  may  or  may  not  be  re- 
quired. If  no  promissory  notes  are  given  or  received,  there  would  be  no  occasion 
for  the  Bill  Book  ;  and  if  the  bills  of  purchases  or  invoices  were  filed  away  with 
care,  the  Invoice  Book  might  be  dispensed  with. 

INVOICE  BOOK. — This  book  should  contain  a  minute  description  of  all  the 
merchandise  with  which  we  are  concerned — all  that  we  buy  or  receive.  Entries 
in  this  book  consist  merely  of  copies  of  the  bills  or  invoices  of  goods  bought,  or 
received  to  be  sold  on  commission.  The  original  bills  and  invoices  should  be  pre- 
served with  care.     . 

SALES  BOOK. — This  book  should  give  a  description  of  all  the  merchandise 
we  sell,  or  which  passes  out  of  our  possession.  At  the  time  the  purchaser  selects 
his  goods,  they  are  described  in  the  Sales  Book — quantity,  quality,  and  price  ;  and 
from  this  book  we  make  out  his  bill.  In  this  order  we  may  render  a  second  or 
third  bill  exactly  like  the  first.  / 

CASH  BOOK. — This  book  shows  all  the  sums  of  money  which  we  pay  or  re- 
ceive, with  a  short  explanation  relating  to  each  sum.  The  entries  in  this  book  are 
made  at  the  time  of  paying  or  receiving  the  money. 

In  a  business  where  there  are  many  sums  received  and  paid,  this  book  should 
be  balanced  daily  ;  which  is  done  by  adding  both  pages  (Dr.  and  Cr.,)  and  sub- 
tracting the  total  paid  from  the  total  received,  and  the  difference  will  be  the  "bal- 
ance on  hand."     This  balance  should  agree  with  the  money  itself. 

COMMISSION  SALES  BOOK.— This  book  shows  the  particulars  of  mer- 
chandise sold  by  us  for  others.  Entries  are  made  in  this  book  from  the  common 
Sales  Book,  and  from  it  we  make  the  Accounts  of  Saks  that  we  may  have  to  re- 
mit to  those  for  whom  we  have  sold. 

BILL  BOOK. — This  book  shows  a  description  of  all  the  notes  or  acceptances 
in  our  favor  or  against  us,  with  their  dates,  credits,  when  due,  and  amounts.— »" 
Those  in  our  favor  are  entered  under  the  head  of  Receivable,  and  those  against  us 
under  Payable. 

DAY  BOOK. — This  book  shows  a  clear,  simple,  complete,  and  brief  relation 
of  all  the  transactions  of  our  business.  The  greater  part  of  the  entries  in  this 
book  are  taken  or  composed  from  the  Invoice  Book,  Sales  Book,  and  Cash  Book. 
The  Day  Book  may  be  considered  the  most  important  of  all  the  books,  as  it  gives 
us  a  complete  history  of  our  business. 

JOURNAL. — This  book. shows  the  names  of  the  debtors  and  creditors  of  all 
the  transactions  recorded  in  the  Day  Book,  for  the  purpose  of  transferring  the 
same  from  the  Day  Book  to  the  Leger.  All  the  science  of  Book-keeping  is  em- 
braced in  the  Journal. 


INTRODUCTION.  II 

LEGER. — This  book  shows  the  accounts  of  all  our  debtors  and  creditors. — 
The  entries  in  this  book  are  drawn  from  the  Journal.  The  great  and  only  object 
of  this  book  is  to  show  the  result  of  our  business  with  every  person,  property,  and 
object.  Every  sum  that  any  individual  or  object  may  owe  us,  or  we  may  owe  him, 
from  the  beginning  of  the  business  to  the  present  time,  will  be  found  under  its 
proper  head  in  this  book. 


We  are  taught,  in  this  science,  to  look  beyond  persons  for  our  debtors  and  cred- 
itors, and  to  recognise  them  in  things  and  objects.  The  common  definition  of  the 
word  debtor,  is  the  person  that  owes  ;  but  in  book-keeping,  the  definition  is  the 
person,  party,  object,  or  cause  which  owes  us,*  The  common  definition  of  creditor, 
is  the  person  who  is  owed  ;  but  in  the  science  it  is  the  person,  party,  object,  or 
cause  which  we  owe.  The  course  of  reasoning  which  authorises  this  application 
of  the  terms  of  debtor  and  creditor  to  objects  as  well  as  to  persons,  is  this  : — we 
do  not  hesitate  to  call  a  person  debtor  when  he  owes  us,  merely  because  we  are 
accustomed  to  do  so  ;  but  cannot  a  class  of  property  owe  us  as  well  as  a  person  ? 
Suppose  we  buy  a  ship  for  the  sum  of  $25,000,  does  not  the  ship  owe  us  that 
sum,  and  shall  she  not  be  called  a  debtor  for  the  sum  she  owes  us  ?  Again,  sup- 
pose the  said  ship* to  produce  us  for  freight  the  sum  of  $500,  can  we  not  perceive 
that  we  owe  Iter  the  value  she  has  produced  or  given  us  ?  and'  owing  her,  is  she 
not  our  creditor  ?  If  a  person  were  to  produce  us  that  sum,  we  would  owe  him  ; 
why  not  owe  the  property  ?  The  act  is  the  same  and  the  effect  should  corres- 
pond. If  you  think  we  do  not  owe  the  vessel  because  we  shall  not  have  to  pay 
it,  you  may  think  the  same  of  the  person  ;  we  may  never  pay  him,  yet  still  he  is 
our  creditor.  To  limit  the  application  of  the  term  creditor  to  such  only  as  we 
must  pay,  would  be  to  abandon  its  use  ;  for  who  can  foresee  who  will  or  will  not 
pay  ?  It  is  enough  to  know  that  we  owe  that  which  produces  us  the  value,  re- 
turnable or  not. 

Before  we  commence  the  explanation  of  the  business  and  entries  embraced  un- 
der date  of  January,  let  us  refer  to  the  technical  form  in  which  the  debtors  and 
creditors  generally  appear.  Let  us  suppose  that  we  buy  of  Brown  &  Co.  50  Box- 
es of  Sugar,  and  pay  for  the  same  in  Cash  $2,000  ;  now  what  debtors  and  cred- 
itors result  from  this  operation  ?  We  reason  thus  :  Merchandise  (the  Sugar) 
owes  us  the  sum  it  has  cost  us — the  value  we  have  invested  in  it ;  Merchandise  is 
therefore  our  Debtor.  Now  what  do'  we  owe  ?  We  do  not  owe  Brown  &  Co., 
because  we  paid  them.;  did  we  ourselves  pay  them  for  the  Sugar  ?  No  !  It  was 
Cash  that  paid  for  the  Sugar  for  us. .  Then  we  owe  to  that  class  of  property  cal- 
led Cash,"  and  it  is  our  Creditor.     We  may  now  write 

Merchandise  Dr.  for    $2,000  00 

Cash  Cr.  for    $2,000  00 

Or,  expressed  in  the  tcc/mical  form,  meaning  exactly  the  same, 
Merchandise  B^" 

To  Cash  $2,000  00 

This  form  gives  the  name  of  both  the  debtor  and  creditor  without  using  tho 
word  "  Cr." ;  and  it  consists  of  the  following  abbreviated  sentences  ;  thus  : 


12  INTRODUCTION. 

Merchandise  -w -Dix- Id  US  ftr  $2,000  00 

WrarrB**  To  Cash  Jar  $2,000  00 

Saying  that  "we  are  Dr.  to  Cash"  is  equivalent  to  saying  "Cash  Cr."  ;  while 
omitting  the  words  in  italics,  leaves  merely  the  names  of  the  debtors  and  credit- 
ors as  they  appear  in  the  preceding  arrangement. 

In  like  manner  Real  Estate,  Stocks,  Goods,  and  all  classes  of  property,  and 
names  or  titles  expressive  of  causes  and  effects,  which  cause  expenditure,  or  pro- 
duce value,  become  subject  to  the  terms  "  Dr.  and  Cr.,"  because  they  owe  us  for 
the  value  we  invest  in,  or  expend  on  them ;  and  we  owe  them  for  the  value  they 
produce,  or  give  us.  By  this  simple,  just,  and  correct  method  of  viewing  and 
treating  monetary  and  business  affairs,  a  most  complete  and  admirable  bal- 
ancing system  of  keeping  accounts  has  been  invented— the  system  of  Double  En- 
try— one  which  constantly  preserves  an  even  balance  between  the  debtor  and  cred- 
itor values,  and  presents  to  our  view  all  that  we  can  desire  to  know  relative  to 
our  Assets  and  Liabilities,  and  our  Profits  and  Losses. 

In  order  to  render  that  part  of  the  science  commonly  considered  difficult,  sim- 
ple, positive,  and  rational,  and  to  conduct  the  mind  of  the  reader  or  student  into 
its  true  elements,  securing,  at  every  degree  of  advancement,  a  clear  understanding 
of  what  is  termed  journalizing,  we  cannot  recommend  a  too  close  observance  of 
the  one  and  only  rule  needful.     This  rule  originates  thus : — 

Book-keeping,  or  the  science  of  accounts,  is  a  systematic  exhibition  of  all  that 
is  owed  us,  and  all  that  we  owe.  These  are  our  Creditors,  and  those  our  Debtors ; 
hence  arises  a  rule,  infallible  in  its  application,  and  in  its  truth  self-evident. 

INFALLIBLE    RULE    IN    JOURNALIZING. 

Whoever  or  whatever  owes  us  is  Debtor Dr. 

Whoever  or  whatever  we  owe  is  Creditor Cr. 

Or,  in  other  words —  Debit  whatever  owes  us  ;  and 

Credit  whatever  we  owe. 
Or,  we  may  resolve  the  rule  into  the  following  simple  questions  : — 

What  Person  or  Object  owes  us  ?  For  that  alone  is  the Dr. 

What  Person  or  Object  do  we  owe  ?       For  that  alone  is  the Cr. 

NotEb— There  is  a  discrimination  in  the  sentences  of  this  rule,  not  at  once  perceived  by  all 
readers.  Every-mercantile  transaction  contains  many  more  debtors  and  creditors  than  we 
are  directly  concerned  with.  For  instance,  in  the  simple  transaction  of  buying  merchandise, 
there  are  four  debtors  and  creditors  from  which  we  have  to  choose  in  making  a  Journal 
entry :  1st.  Merchandise  is  a  debtor,  because  it  owes  us  for  its  cost ;  2d.  "We  are  debtor,  be- 
cause we  owe  the  person  of  whom  we  bought;  3d.  Merchandise  is  creditor,  because  the  per- 
son who  sold  it  owes  it  for  the  value  it  produced  him ;  4th.  The  person  we  bought  of  is 
creditor,  because*we  owe  him.  Here,  then,  we  find  two  debtors  and  two  creditors  arising 
out  of  this  little  transaction  ;  but  the  debtors  and  creditors  of  the  rule  are  those  only  that  owe 
us,  and  those  only  thai  we  owe,  however  many  more  there  may  be. 

RULES    FOR    ORIGINAL    ENTRIES. 

1,  When  you  buy  goods — Copy  the  bill  in  the  Invoice  Book. 

2,  When  you  sell  goods — Describe  the  articles  sold  in  the  Sales  Book. 

3,  When  you  receive  money — Make  an  entry  in  the  Cash  Book. 


JOURNALIZING.  13 

4,  When  you  pay  money — Make  an  entry  in  the  Cash  Book, 

5,  "When  you  receive  a  note — Make  an  entry  in  the  Bill  Book. 

6,  When  you  give  a  note — Make  an  entry  in  the  Bill  Book. 

7,  When  you  accept  a  draft — Make  an  entry  in  the  Bill  Book. 

8,  When  you  draw  a  draft — Make  an  entry  in  the  Day  Book. 

9,  When  you  write  a  letter — Make  a  copy  of  it  in  the  Letter  Book. 

10,  When  you  sell  goods  on  commission — Make  entries  in  the  Sales  Book 

and  the  Commission  Sales  Book. 

11,  All  your  business  transactions — Record  in  the  Day  Book,  and 

12,  In  composing  your  Day  Book  records — State  briefly,  but  clearly,  what 

you  have  done,  rather  than  what  was  done  by  the  other  party  to  the 
transaction. 


Note. — The  explanation  of  business  transactions,  and  the  entries  they  require  in  the  Jour- 
nal and  other  account  books,  will  be  found  on  the  following  pages.  The  reader  need  not 
look  in  the  Day  Book,  Journal,  or  Leger,  for  instruction,  because  those  books  give  the  busi- 
ness that  is  supposed  to  occur,  and  not  the  instruction.  By  this  arrangement,  the  student 
will  derive  the  advantage  of  knowing  which  part  of  the  volume  is  to  serve  as  his  teacher, 
aud  which  part  he  is  to  learn  or  be  taught. 


THE    BUSINESS    OF    JANUARY. 

Embracing  Entries  of  twenty-six  Transactions,  relating  to — Entering  into  Partnership — Ad- 
vancing Capital — Assuming  Partner's  Debts — Simple  Purchases  and  Sales — Simple  Re- 
ceipts and  Payments — Loans — Loans  on  Notes  and  Interest — Receiving  and  Delivering 
Notes — Paying  our  Notes. 

The  Day  Book  commences  with  a  statement  of  the  situation  of  the  party  or 
parties  entering  into  business — what  capital  they  possess,  and  what  it  consists  of ; 
what  they  owe  and  how  they  owe  it.  In  making  Day  Book  entries,  or  recording 
a  transaction  in  the  Day  Book,  we  do  not  say  who  is  debtor  or  who  is  creditor, 
because  this  belongs  to  the  Journal. 

The  capital  being  advanced — that  is,  the  money  deposited  in  the  banks  and 
entered  in  the  Cash  Book — the  notes  described  in  the  Bill  Book,  (aicopy  of  these 
particular  notes  will  be  found  at  the  end  of  the  Bill  Book,)  the  inventory  of 
merchandise  copied  in  the  Invoice  Book,  and  the  articles  of  agreement  signed  and 
exchanged,  we  make  an  entry  in  the  Day  Book  similar  to  that  which  appears  in 
said  book  under  date  of  January  5,  1858. 

The  Journal  commences  with  an  entry  formed  from  the  first  cme  in  the  Day- 
Book.  The  entry  consists  of  a  deduction  made  from  the  transaction  consisting  of 
the  names  of  those  objects  that  owe  us,  or  those  that  we  owe,  for  the  purpose  of 
conveying  the  same  to  the  Leger.  These  Journal  entries  are  made  by  the  appli- 
cation of  the  rule,  thus :  Read  the  transaction  in  the  Day  Book  carefully,  and  en 
deavor  to  find — 

Who  or  what  owes  us,  and  write  that  as Dr. 

Whom  or  what  we  owe,  and  write  that  as Cr. 


14  JOURNALIZING. 

Day  Book — January  5. 

The  first  entry  in  the  Day-Book  requires  entries  in  the  Cash  Book,  Bill  Book 
and  Invoice-Book,  and  gives  the  following  entry  for  the  Journal : — 

Journal — January  5. 
Sundries  Dr.  To  Sundries. 

Cash {is  Dr.  to  the  firm) $38,000  00 

Bills  Receivable (is  Dr.  to  the  firm) 4,610  00 

Merchandise (is  Dr.  to  the  firm) 3,125  00 

Charles  Lawrence (w  Dr.  to  the  firm) 140  00   $45,935  00 

( The  firm  is  Dr.)     To  Thomas  Blanchard 28,000  00 

To  C.  C.  Marsh 17,935  00      45,935  0C 

Elucidation  of  the  preceding  journal  entry  : — The  words  "  Sundries  Dr. 
To  Sundries "  are  merely  a  preface  to  the  debtors  and  creditors,  indicating  that 
there  are  more  than  one  that  owe  us,  and  more  than  one  that  we  owe. 

In  determining  the  debtors,  we  reason  thus — Our  capital  is  the  sum  of 
$45,935.  What  class  of  property  is  our  capital  in?  Ans.  Our  capital  is  iu 
Cash,  Notes,  Merchandize,  and  a  claim  on  an  individual  ;  now  as  our  capital  is 
in  these  objects,  these  objects  owe  us,  and  owing  us,  they  must  be  our  debtors. 

Cash  is  debtor,  because  that  class  of  property  denominated  Cash  owes  us  for 
the  amount  of  value  we  have  in  it — viz.,  $38,000. 

Bills  Receivable  are  debtor,  because  the  notes  which  we  hold  against  different 
persons,  owe  us  for  the  sums  for  which  they  are  written  or  drawn — viz.,  $4,610. 
Observe,  it  is  not  the  persons  who  have  given  us  these  notes  that  owe  us,  but  the 
notes  themselves  ;  our  claim  for  the  value  consists  in  the  possession  of  these  notes. 
The  titite  of  bills  receivable  is  applied  to  all  paper  claims  in  our  favor,  such  as 
notes,  arafts,  &c. ;  but  there  is  no  necessity  to  give  anything  a  title  until  we  have 
determined  that  it  owes  us,  or  that  we  owe  it. 

Merchandise  is  debtor,  because  that  property  owes  us  for  the  value  we  have  iu 
it,  whieh'is  $3,125. 

Charles  Lawrence  is  debtor,  because  he  owes  us  for  the  amount  of  a  claim  that 
we  hold  against  him — $140. 

In  determining  the  creditors  we  reason  thus — We  have  a  capital  of  $45,935 — 
to  whom  do  we  owe  for  that  capital  ?  Ans.  We  owe  the  parties  who  furnished 
it ;.  these  then  are  our  creditors. 

Thomas  Blanchard,  is  creditor  because  the  firm,  Blanchard  &  March,  owes  him 
individually  for  the  amount  of  capital  he  has  contributed — $28,000. 

C.  C.  Marsh,  for  the  same  reason  is  creditor  for  the  capital  contributed  by 
him  ;  being  $11,935. 

The  sum  total  of  the  debtors  should  be  extended  into  the  last  column,  and 
should  agree  with  the  amount  of  the  creditors  also  extended  into  the  outer 
column.  V 

The  amount  of  the  sums  of  the  debtors,  and  that  of  the  creditors,  should 
always  be  equal  in  every  Journal  entry. 

When  an  entry  in  the  Day  Book  has  been  Journalized,  or  entered  in  the  Jour- 
nal, we  place  the  page  of  the  latter  in  the  margin  of  the  former,  opposite  the 
said  entry,  to  indicate  that  it  is  passed  to  the  Journal. 


JOURNALIZING.  15 

Note. — "We  make  a  distinction  in  the  position  of  the  debtors  and  creditors  in  the  Journal 
entries,  by  placing  the  debtors  close  to  the  line  on  the  left,  and  the  creditors  about  an  ineh 
further  to  the  right. 

The  preposition  "  To "  is  always  placed  before  the  names  of  the  creditors,  because  th« 
meaning  is,  that  we  are  Dr.  to  those  creditors ;  "  we  are  Dr.'1  being  words  understood  and 
not  expressed. 

Day  Book,  2d  Entry  of  January  5. 

The  transaction  under  this  date  in  the  Day  Book  requires  entries  in  the  Bill- 
Book  of  the  Notes  assumed,  and  gives  the  following  debtors  and  creditors,  or 
Journal  entry  : — 

Sundries  Dr.  To  Bills  Payable.  .$2,310  00 

Thomas  Blanchard $1,080  00 

C.  C.  Marsh 1,230  00    2,310  00 

Elucidation. — In  this  entry,  as  in  the  first,  the  debtors  are  prefaced  by  the 
word  Sundries,  there  being  more  than  one  debtor. 

Thomas  Blanchard  is  debtor,  because  he  individually  owes  us  (the  firm)  for  the 
amount  of  his  note,  which  we  have  assumed. 

C.  C.  Marsh  is  our  debtor  for  the  same  reason. 

The  creditor  in  this  entry  is  Bills  Payable.  It  is  so  because  toe  owe  the  notes  ,- 
having  assumed  them  ;  they  now  stand  out  against  us  as  our  own  notes. 

Bills  Payable  is  a  title  given  to  notes  and  acceptances  with  our  signature,  in 
favor  of  others. 

Day  Book — January  7. 

The  transaction  of  this  date  in  the  Day  Book,  requires  also  an  entry  in  the 
Cash  Book,  and  gives  the  following  entry  in  the  Journal : — 

Store  Fixtures                                  Dr.  $300  00 

To  Cash 300  00 

Elucidation.- -The  store  fixtures  are  a  property  which  has  cost  us  $300,  for 
which  it  owes  us,  and  therefore  is  debtor.  Cash  is  creditor,  because  we  owe  that 
property  for  paying  the  sum  for  us.  For  example,  if  John  Sims  had  paid  for  the 
store  fixtures  for  us,  we  would  then  owe  him  instead  of  Cash. 

Observe,  that  when  we  write  "  Store  Fixtures  Dr.  To  Cash,"  we  do  not  mean 
to  say  that  the  former  owes  to  the  latter,  but  that  Store  Fixtures  are  debtor  to 
us  and  that  we  are  debtor  to  Cash.  If  this  Journal  entry  were  written  in  full,  it 
would  read  thus  : — 

Store  Fixtures are Dr.  to  us  for $300  00 

We  are  Dr.. .  .To  Cash '.for 300  00 

Never  forget  that  the  words  in  italics,  although  never  expressed,  are  always 
to  be  understood.  Omitting  these  words,  leaves  the  entry  in  its  technical  form, 
as  it  appears  in  the  Journal. 


16 


JOURNALIZING 


Day  Book — January  8. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  an  entry  in  the 
.  Sales  Book,  and  gives  the  following  entry  in  the  Journal : — 


Paul  Harris  Dr. 

( We  are  Dr.)  To  Merchandise. . 


(to  us) 


$325  00 
.   325  00 


Elucidation. — Paul  Harris  is  debtor,  because  he  owes  us  for  the  amount  of  the 
goods  sold  to  him. 

Merchandise  is  creditor,  because  we  owe  that  class  of  property  for  having  pro- 
duced us,  in  this  case,  $325.  For  the  value  that  Merchandise  has  produced  us, 
Harris  is  responsible. 

We  never  see  the  word  Cr.  (creditor)  in  Journal  entries.  It  is  unnecessary, 
because  the  debtors  being  always  named  as  such,  it  follows  that  the  others  must 
be  the  creditors  ;  while  saying  "  We  are  Dr."  to  an  object  or  person,  is  equivalent 
to  calling  that  object  "  Cr." 

Day  Book — January  10. 


The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Sales 
and  Bill  Books,  and  gives  the  following  entry  for  the  Journal : — 


Bills  Receivable                            Dr.  (to  us) 
( We  are  Dr)  To  Merchandise , 


$500  00 
,   500  00 


Elucidation. — The  promissory  note  of  William  Blakely,  which  we  entitle  Bills 
Receivable,  is  debtor,  because  it  owes  us  for  the  value  the  merchandise  has  pro- 
duced us — $500. 

Merchandise  is  creditor,  because  we  owe  it  for  producing  us  the  sum  of  $500. 
If  a  man  had  produced  or  given  us  $500,  we  all  would  be  willing  to  owe  him,  or 
credit  him,  for  it ;  why  not,  then,  acknowledge  ourselves  indebted  to  merchandise 
for  what  it  produces  ? 

Day  Book — January  12. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Sales 
and  Cash  Books,  and  gives  the  following  entry  for  the  Journal : — 


Cash  is 

( We  are  Dr.)  To  Merchandise . 


Dr. 


(to  us  for) 


$125  00 
,   125  00 


Elucidation. — Cash  is  debtor,  because  it  owes  us  for  the  value  that  the  mer- 
chandise has  produced  us,  for  that  value  is  in  the  Cash.  Cash  is  a  property  that 
owes  us  $125  more,  since  the  transaction  occurred,  than  it  did  before. 

Merchandise  is  creditor,  because  we  owe  it  for  producing  us  the  $125. 

Day  Book — January  13. 

The  transaction  of  this  date  in  the  Day  Book,  requires  also  an  entry  in  the  Sales 
Book,  and  gives  the  following  entry  for  the  Journal : — 


JOURNALIZING.  lh, 

Oliver  Otis  &  Co.                       Dr.            (to  us)  $2,000  00 

(We are  Dr.) To  Merchandise 2,000  00 

Elucidation. — Oliver  Otis  &  Co.  are  debtors,  because  they  owe  us  for  the  value 
of  the  goods  we  have  sold  them,  and  for  which  they  have  not  yet  paid. 

The  Merchandise  is  creditor,  because  we  owe  it  for  the  value  it  has  produced 
us,  and  for  which  value  Otis  &  Co.  are  responsible. 

Day  Book — January  14. 

The  transaction  of  this  date  in  the  Day  Book,  requires  an  entry  in  the  Invoice 
Book,  aud  gives  the  following  entry  for  the  Journal. 

Merchandise            (is)                Dr.            (to  us)  $1,500  00 

(We  are  Dr.)  To  Henry  Austin 1,500  00 

Elucidation. — As  the  merchandise  has  cost  us  $1,500,  it  must  owe  us  that 
sum  ;  therefore  it  is  debtor. 

Henry  Austin  is  creditor,  because  we  owe  him  for  the  goods  we  have  bought 
of  him,  for  we  did  not  pay  him. 

Day  Book — January  14.    (2d.  transaction  of  this  date.) 

The  second  transaction  of  this  date  in  the  Day  Book  requires  also  an  entry  in 
the  Invoice  Book  and  Cash  Book,  and  gives  the  following  entry  in  the  Journal : — 

Merchandise                                 Dr.              (to  us)  $800  00 

( We  are  Dr.)  To  Cash 800  00 

Elucidation. — The  goods  we  have  bought  are  debtor,  because  they  owe  70s  for 
their  cost — $800. 

We  are  debtor  to  Cash,  because  that  article  has  paid  Rogers  &  Bros,  for  us  ; 
therefore  Cash  is  the  creditor,  expressed  as  above. 

Note — It  is  not  exactly  true  to  say  that  we  paid  Rogers  &  Bros,  for  the  merchandise  in 
the  above  transaction.  We  could  not  do  it  of  ourselves ;  we  must  employ  some  agent ;  the 
agent  in  this  case  was  Cash. 

Day  Book — January  16. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the 
Invoice,  Sales,  and  Cash  Books,  (the  entries  in  the  Invoice  and  Sales  Books 
will  hereafter  be  supposed,)  and  gives  the  following  entry  for  the  Journal : — 

Merchandise        is     Dr.  (to  us  and  we  are  Dr.)  To  Sundries. .  .$3,200  00 

(We  are  Dr.)     To  Cash $2,000  00 

Merchandise 1,200  00      3,200  00 

Elucidation. — First,  we  always  ask  ourselves,  what  owes  us  ?    and  we  write 
down  what  we  think  owes  us  as  the  Dr. 
The  merchandise  owes  us,  because  it  has  cost  us  $3,200  ;  and  we  owe  the  Cash 

3 


18  JOURNALIZING. 

for  having  paid  $2,000  for  us  toward  the  payment  of  $3,200  ;  and  we  owe  to 
some  other  goods,  likewise  called  merchandise,  for  having  paid  for  the  balance — 
being  $1,200.     We  find,  then,  in  this  transaction,  one  debtor  and  two  creditors. 

Day  Book — January  17. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  an  entry  in  the  Cash 
Book,  and  gives  the  following  entry  for  the  Journal : — 

James  Truman                            Dr.              (to  us)  $1,000  00 

( We  are  Br.)  To  Cash 1,000  00 

Elucidation. — Truman  owes  us  for  the  amount  we  have  lent  him. 
Cash  is  the  creditor  ;  or,  we  owe  to  Cash  for  paying  the  amount  to  J.  Truman 
for  us. 

Day  Book — January  19. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Bill 
and  Cash  Books,  and  gives  the  following  entry  for  the  Journal : — 

Sundries  Dr.  {to  us  and  we)  To  Oliver  Otis  &  Co.  $2,000  00 

Bills  Receivable are Dr to  us  for $1,000  00 

Cash is Dr to  us  for 1,000  00     2,000  00 

Elucidation. — The  word  "  Sundries,"  as  we  have  before  said,  is  merely  a  pre- 
face to  the  debtors  which  are  placed  directly  under  it. 

Bills  Receivable  owe  us  for  part  of  the  sum  that  Otis  &  Co.  have  paid  us,  and 
therefore  that  class  of  property  is  debtor. 

Cash  owes  us,  because  we  have  received  part  of  the  sum  that  Otis  &  Co.  owed, 
in  cash — Otis  &  Co.  pay  us  in  that  class  of  property  called  Cash. 

Note. — When  a  person  pays  us  what  he  owed,  of  course  he  must  pay  us  in  some  class  of 
property ;  consequently,  the  property  or  thing  in  which  he  pays  us,  owes  us  the  sum  which 
the  person  owed.  In  this  manner,  we  see  how  Bills  Receivable  and  Cash  owe  us,  and  be- 
come debtors  for  the  amount  which  Otis  &  Co.  owed  us  before. 

Otis  &  Co.  are  creditors,  because  we  owe  them  for  having  paid  us  the  sum  they 
owed,  and  for  which  we  had  charged  them,  on  a  former  date. 

Note. — If  we  should  think  that  we  do  not  owe  Otis  &  Co.,  because  they  have  only  paid 
us  what  they  owed,  still  we  must  agree  in  this :  that,  as  they  have  paid  us  $2,000,  they 
ought  to  be  credited  for  that  sum  ;  this  amounts  to  the  same  as  saying  we  owe  them,  for  no 
one  should  be  credited  for  what  we  do  not  owe  him. 

Day  Book— January  21. 

The  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  the  BiL 
Book,  and  gives  us  the  following  entry  for  the  Journal : — 

Bills  Receivable                           Dr.                (to  us)                $325  00 
(We  are  Dr.)  To  Paul  Harris 325  00 


JOURNALIZING.  19 

Elucidation — The  sum  which  Harris  owed  us  is  now  owed  to  us  by  the  note, 
which  as  a  class  of  property  we  call  Bills  Receivable. 

Harris  haying  paid  us  what  he  owed,  has  made  us  responsible  to  him  for  the 
same  sum  ;  for  which  we  credit  him,  or  for  which  we  owe  him.  His  account  now 
balances,  because  we  owe  each  other  equal  amounts. 

Day  Book — January  22. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  an  entry  in  Cash 
Book,  and  gives  the  following  entry  for  the  Journal : — 

Cash                                              Dr.  (to  us)  $1,000  00 

( We  are  Dr.)  To  James  Truman 1,000  00 

Elucidation. — Cash  owes  us,  because  in  this  class  of  property  we  have  recived 
the  sum  that  is  paid  us.     Cash  is  always  a  debtor  when  we  receive  it. 

James  Truman  is  a  creditor,  because  we  owe  him  for  the  sum  which  he  has 
paid  or  delivered  to  us. 

Note. — It  is  very  necessary  to  understand  well  the  exact  use  and  import  of  the  words 
debtor  and  creditor,  because  the  most  important  part  of  this  science  consists  in  being  able  to 
find  with  facility  "  who  or  what  owe  us,"  and  "  to  what  or  whom  we  owe,"  in  all  mercantile 
transactions.  A  clear  understanding  of  the  more  simple  transactions  will  afford  us  great 
aid  in  disposing  of  the  more  complicated.  For  this  reason  we  are  so  particular  in  explain- 
ing the  simple  entries  of  this  month's  transactions. 

Day  Book — January  22.     (2d.  transaction  of  this  date). 

The  second  transaction  in  the  Day  Book  requires  an  entry  in  the  Bill  Book, 
and  gives  the  following  entry  for  the  Journal : — 

Henry  Austin                      (is)         Dr.     (to  us  for)         $1.500  00 
( We  are  Dr.)  To  Bills  Payable for-'-'..   1,500  00 

Elucidation. — Having  paid  H.  Austin  what  we  owed  him,  he  now  owes  us  for 
the  sum  we  owed  him,  which  balances  his  account,  or  makes  us  owe  each  other 
equal  amounts. 

We  owe  to  our  note  (which  we  call  Bills  Payable),  because  it  has  paid  Aus- 
tin for  us  ;  or,  because  our  note  stands  out  against  us,  holding  us  responsible  for 
the  face  of  it— $1,500. 

Note. — It  may  appear  strange  to  some,  to  say,  in  this  transaction,  that  Austin  owes  us ; 
but  he  does,  nevertheless,  and  it  is  proved  thus  :  We  owed  Austin  $1,500,  which  will  always 
appear  on  the  credit  side  of  his  account  in  our  books  ;  nothing  should  or  can  obliterate  the 
transaction  that  made  us  owe  him.  Now,  then,  the  only  way  we  can  settle  this  debt,  is,  not 
by  getting  out  of  his  debt  (because  the  fact  of  our  owing  him  remains  forever),  but  by 
getting  him  into  our  debt  for  the  same  amount ;  therefore,  when  we  pay  him  what  we  owe 
him,  he  owes  us  for  the  sum  paid  him,  which  makes  us  owe  each  other  equally,  and  iu  this 
way  the  debt  is  adjusted. 

All  the  sums  on  the  credit  side  of  an  account  in  our  Leger,  are  sums  that  we 
owe,  and  those  on  the  debit,  are  sums  owed  to  us.  It  is  only  the  balance,  or 
difference,  which  is  to  be  paid. 


20  JOURNALIZING. 

Day  Book — January  24. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Cash 
Book  and  Sales  Book,  (entries  of  sales  in  the  Sales  Book  and  purchases  in  the 
Invoice  Book  will  hereafter  be  supposed, )  and  gives  the  following  entry  for  the 
Journal : — 

Sundries  Dr.  To  Merchandise.  .$410  00 

S.  H.  Lovell $250  00 

Cash 160  00     410  00 


Elucidation. — The  "Sundries"  (Lovell  and  Cash)  owe  us,  because  the  amount 
that  Merchandise  has  produced  us  is  in  them  ;  they  are  therefore  debtors. 

We  are  debtors  to  Merchandise,  or,  which  is  the  same  thing,  Merchandise  is 
our  creditor,  because  we  owe  it  for  producing  us  $410. 

Day  Book — January  26. 

Elucidation. — Similar  to  that  of  the  24th. 

Day  Book — January  28. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Bill 
Book  and  Cash  Book,  and  gives  the  following  entry  for  the  Journal : — 

Bills  Receivable  Dr.  To  Sundries.  .$2,121  00 

To  Cash $2,000  00 

"   Interest 121  00     2,121  00 

Elucidation. — In  this  transaction  we  lend  money  on  interest,  and  receive  a 
note  for  the  amount  that  will  be  due  at  the  end  of  the  year.  The  note  is  re- 
sponsible to  us  for  the  amount ;  the  note  owes  us,  and  therefore  it  is  debtor  for 
the  amount  it  is  drawn  for — $2,121. 

We  say  "  To  Sundries,"  because  we  owe  more  than  one — Cash  and  Interest. 

Cash  is  creditor,  because  it  has  paid  to  J.  Truman  for  us  the  $2,000. 

Interest  is  creditor,  because  we  owe  it  for  producing  us  the  $121 :  this  produc- 
tion is  in  the  note.  Interest  is  a  branch  of  our  Business.  The  name  our  busi- 
ness receives  in  our  books  is  "  Profit  and  Loss ;"  Interest  account  is  a  branch  of 
the  Profit  and  Loss  account. 

Note. — This  science  renders  susceptible  of  responsibility  things  as  well  as  persons  ;  that  is 
in  the  same  manner  that  John  Sims  becomes  our  debtor  or  creditor,  so  may  a  bag  of  coffee, 
or  a  box  of  sugar.  Our  Business,  which  we  entitle  "Profit  and  Loss,"  may  also  become  our 
debtor  or  creditor,  like  Sims  or  the  coffee.  When  it  is  in  our  favor,  and  produce  us  value, 
we  owe  it,  and  it  becomes  a  creditor  ;  when  it  goes  against  us,  and  costs  us,  or  makes  us 
lose,  it  owes  us,  and  it  becomes  a  debtor. 

Day  Book — January  30. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Cash 
Book  and  Bill  Book,  and  gives  the  following  entry  for  the  Journal : — 


POSTING.  21 

Bills  Payable  Dr. 

To  Cash $1,230  00 

Elucidation. — The  note  now  paid  and  cancelled,  was  issued  by  our  partner, 
Mr.  Marsh,  before  this  partnership  began,  and  it  was  assumed  by  us  as  our  own, 
in  the  opening  of  the  Books. 

Bills  Payable  (the  name  we  give  to  the  note)  is  debtor,  because  it  owes  us,  for 
we  have  paid  it  what  we  owed  it.  Had  we  paid  a  person  what  we  owed  him, 
he  would  be  debtor :  the  note  is  to  be  treated  as  a  person.  It  was  not  T.  P. 
Cope  that  we  owed  ;  it  was  the  note  in  whose  ever  hands  it  might  have  been.  _ 

We  are  debtor  to  Cash,  or  Cash  is  the  creditor,  because  we  owe  it  for  paying 
the  note,  or  the  sum  of  the  note  for  us.  The  entry  required  in  the  Bill  Book  is 
only  in  the  column  of  "  Remarks." 

Note— Balance  now  the  Cash  Book— the  balance  of  Cash  on  hand  at  this  date  is  $33,205. 


POSTING. 


The  transactions  of  January  having  been  Journalized — that  is,  prepared  for 
the  Leger — we  will  now  begin  to  post.  Posting  is  a  very  simple  operation,  be- 
ing little  more  than  copying  from  the  Journal  into  the  Leger.  The  object  of 
posting  is  to  enable  us  to  find  all  concerning  one  thing  or  person,  from  the  begin- 
ning of  the  business  to  the  present,  at  one  place,  in  one  book — the  Leger. 

Example. — Merchandise,  we  perceive,  is  concerned  in  most  of  our  transactions, 
from  the  beginning  to  the  end  of  our  business  ;  therefore,  if  we  do  not  collect  all 
relating  to  it  at  one  place,  we  can  not  ascertain,  without  much  difficulty,  the 
amount  we  have  bought  or  sold :  or  should  we  desire  to  know  how  much  any 
person  owes  us,  or  we  owe  him,  we  would  be  obliged  to  examine  the  Day  Book 
from  the  first  page  to  the  last ;  but  when  his  account  is  posted,  we  have  only  to 
turn  to  a  certain  page  appropriated  to  him  in  the  Leger,  where  we  shall  find' 
the  result  of  all  our  transactions  with  him. 

By  the  aid  of  the  Journal,  we  deduce  from  every  transaction  in  the  Day  Book 
all  that  owes  us,  and  all  that  we  owe,  which  is  all  that  passes  into  the  Leger. 
The  Journal,  therefore,  serves  to  convey  the  debtors  and  creditors  from  the  Day 
Book  to  the  Leger. 

Note. — To  the  Leger  belongs  an  Index,  which  is  often  a  part  of  the  book ;  but  it  is  more 
convenient  to  have  it  separate. 

We  now  proceed  to  show  the  operation  of  posting — trerisferring  the  debtors 
and  creditors,  with  their  sums,  from  the  Journal  to  the  Leger — beginning  with 
the  first  entry  in  the  Journal. 


22  POSTING. 

Journal — January  5. 

Sundries  Dr.  To  Sundries. 

2  Cash $38,000  00 

5  Bills  Receivable 4,070  00 

4  Merchandise 3,125  00 

10  Charles  Lawrence 140  00  $45,935  00 

1  To  Thomas  Blanchard 28,000  00 

1  To  C.  C.  Marsh 17,935  00    45,935  00 

To  Post  the  above  Entry. — As  "  Sundries  Dr.  To  Sundries "  is  only  a  pre- 
face, the  first  thing  that  we  see  in  the  above  entry  is  "  Cash  Dr.  $38,000."  Cash, 
therefore,  is  the  first  account  to  be  opened  in  the  Leger.  We  appropriate  for 
it  page  2,  and  write  in  the  centre  of  the  book  for  page)  the  word  "Cash,"  and 
on  the  sides,  the  abbreviations,  "  Dr."  and  "  Cr." 

Note. — The  term  "Dr."  is  always  on  the  left,  and  the  ;<  Cr."  on  the  right 

Cash  being  a  debtor  in  the  above  entry,  we  must  make  the  entry  on  the  debtor 
side  of  the  account,  thus  :  In  the  1st  and  2d  columns,  we  write  the  date  ;  in 
the  3d  column,  the  preface  of  the  other  part  of  the  Journal  entry,  which  is,  "  To 
Sundries  ;"  in  the  4th  column,  the  page  of  the  Journal  from  which  we  take  the 
entry  ;  and  in  the  5th,  the  sum  that  cash  owes  us,  being  $38,000.  (See  the  Cash 
account  in  the  Leger,  page  2J  This  done,  place  the  folio  of  the  Cash  account 
against  the  word  "  Cash"  in  the  Journal,  to  indicate  that  it  is  posted.  Enter  the 
title  "  Cash"  in  the  Index.  • 

So  far,  we  have  only  posted  the  first  debtor  ;  the  others,  which  are  Bills  Re- 
ceivable, Merchandise,  and  C.  Lawrence,  we  post  in  the  same  manner,  in  the 
order  they  come,  but  on  separate  pages. 

We  now  pass  to  the  creditors  of  the  foregoing  entry,  the  first  of  which  is 
"Thomas  Blanchard."  For  him  we  open  an  account  on  page  1,  by  writing  his 
name  and  the  abbreviations  "  Dr."  and  "  Cr."  As  he  is  a  creditor  in  the  entry, 
we  must  make  the  entry  on  the  creditor  side  of  the  account ;  and  in  the  1st  and 
2d  columns  we  write  the  date  ;  in  the  3d  column,  the  preface  of  the  other  part 
of  the  Journal  entry,  "  By  Sundries  f  in  the  4th,  the  folio  of  the  Journal ;  and 
in  the  5th  column,  the  amount — $28,000.  In  the  Journal,  opposite  his  name, 
place  the  page  of  the  Leger,  to  show  that  it  is  posted. 

The  other  creditor,  C.  C.  Marsh,  is  posted  in  the  same  manner. 

As  the  Journal  presents  only  four  different  forms  of  entry,  it  will  be  necessary 
to  make  only  four  distinct  explanations  to  teach  that  part  of  the  science  called 
Posting.  Having  given  one  explanation,  we  proceed  now  to  explain  the  manner 
of  posting  the  second  form,  of  Journal  entry. 

Journal — January  5.    (2d.  entry  of  this  date.) 

6  Sundries  Dr.         To  Bills  Payable $2,310  00 

1  Thomas  Blanchard $1,080  00 

1  C.  C.  Marsh 1,230  00    2,310  00 


• 


POSTING.  23 

To  Post  the  above  Entry. — Blanchard  and  Marsh  being  our  debtors,  in 
this  entry  for  the  sum  in  front  of  their  names,  we  return  to  their  accounts, 
already  opened  on  page  1,  and  in  the  1st  and  2d  columns,  on  the  debtor  side, 
we  write  the  date;  in  the  3d  column,  the  opposite  part  of  the  Journal  entry, 
'■'  To  Bills  Payable  ;"  in  the  4th,  the  folio  of  the  Journal  from  which  we  take  the 
sum  ;  and  in  the  5th  column  we  write  the  amounts — $1,080,  and  $1,230. 

This  done,  we  allot,  for  the  account  of  "  Bills  Payable,"  folio  6,  where  we 
open  it  by  writing,  as  before,  its  name  and  the  abbreviations  "Dr."  and  Cr." 
Bills  Payable  standing  as  creditor  in  the  Journal  entry  for  $2,310,  we  make 
entry  on  the  creditor  side  of  the  account,  by  writing  in  the  first  columns  the 
date  ;  in  the  3d,  the  preface  of  the  opposite  part  of  the  Journal  entry,  "  By 
Sundries  ;"  in  the  4th  column,  the  folio  of  the  Journal  from  which  we  take  the 
sum  ;  in  the  5th,  the  amount  for  which  Bills  Payable  ought  to  be  credited — 
$2,310. 

Journal — January  *l. 

C  Store  Fixtures  Dr. 

2  To  Cash $300  00 

To  Post  the  above  Entry. — This  entry  varies  from  the  others,  because  it 
consists  of  only  one  debtor  and  one  creditor — the  others  have  more.  We  open 
an  account  for  the  debtor  fStore  Fixtures)  on  folio  6,  and  write  on  the  debtor 
side  the  date  and  "  To  Cash,"  the  page  of  the  Journal,  "1,"  and  the  amount — 
"  $300."  Cash,  in  the  above  entry,  is  the  creditor  ;  therefore  we  turn  to  the 
Cash  account,  already  opened  on  folio  2,  and  write,  on  the  creditor  side,  the  date 
in  the  1st  and  2d  columns,  *  "  By  Store  Fixtures  "  in  the  3d,  the  page  of  the 
Journal  in  the  4th,  and  the  amount  in  the  5th — $300.  This  done,  the  entry  is 
posted. 

"We  must  never  forget  to  place  the  folios  pf  the  accounts  in  the  Leger  against 
their  names  in  the  Journal,  when  they  have  passed  into  the  Leger. 

The  following  Journal  entry,  the  last  the  posting  of  which  requires  explana- 
tion (all  others  being  posted  in  the  same  manner  as  those  already  explained,)  we 
find  in  the — 

Journal — January  16. 

4  Merchandise  Dr.  To  Sundries $3,200  00 

2  To  Cash $2,000  00 

4  To  Merchandise 1,200  00      3,200  00 

To  Post  the  above  Entry. — Turn  to  the  account  of  Merchandise,  folio  4, 
and  on  the  debtor  side  write,  as  before,  in  the  1st  and  2d  columns,  the  date  : 

*  Note. — The  word  "  By  "  does  not  appear  in  the  Journal  entries,  because  the  names  of 
the  debtors  are  always  placed  before  the  names  of  creditors.  If  their  position  was  reversed, 
the  By  would  appear,  and  not  the  To.  If  we  make  a  Journal  entry  with  the  creditor  first  in 
order,  the  form  would  be  different,. but  the  meaning  would  be  the  same.  Thus,  in  the  entry 
of  January  7 — 

Cash  Cr. 

By  Store-Fixtures $300  00 

This  is  the  way  the  entry  reads,  when  we  post  it  into  the  Cash  account  in  the  Leger. 


24  TRIAL    BALANCE. 

in  the  3d,  the  preface  of  the  opposite  part  of  the  Journal  entry,  "  To  Sundries  :r 
in  the  4th  column,  the  page  of  the  Journal ;  and  in  the  last  columns,  the  amount 
for  which  Merchandise  ought  to  be  charged  or  debited — $3,200. 

The  creditors  in  the  above  entry  are  Cash  and  Merchandise,  which  are  car- 
ried to  the  Leger  by  writing  on  their  creditor  sides — in  the  first  two  columns, 
the  dates  ;  in  the  3d,  the  opposite  part  of  the  Journal  entry,  "  By  Merchandise;" 
in  the  4th,  the  page  of  the  Journal  the  entry  comes  from  ;  and  in  the  last  col- 
umns, the  amounts  for  which  they  should  be  credited. 

In  opening  accounts  in  the  Leger,  we  give  to  each  a  certain  space,  according 
to  the  business  that  we  think  we  may  have  with  the  person  or  property  ;  and 
.re  generally  leave  some  forty  or  fifty  of  the  beginning  pages  of  the  Leger,  for 
private  accounts,  such  as  Cash,  Merchandise,  Bills  Receivable,  Bills  Payable, 
Discount  and  Interest,  Commission,  Profit  and  Loss,  &c. 

Having  Journalized  and  Posted  the  transactions,  or  entries,  of  the  month  of 
January,  we  will  now  proceed  to  make  out  a  Trial  Balance. 


TRIAL    BALANCE. 


The  Trial  Balance  exhibits  what  is  termed  the  face  of  the  Leger  ;  it  is  a  col- 
lection of  all  the  balances  that  appear  in  the  Leger,  presented  in  two  columns  ; 
the  debtor  balances  in  one  column,  and  the  creditor  balances  in  the  other. 

In  proceeding  to  make  the  Trial  Balance,  first  add  and  subtract  the  columns 
of  every  account  in  the  Leger.  Do  this  with  a  pencil,  in  small  figures,  setting 
the  balance,  or  difference,  on  the  side  that  is  the  larger.  Next,  we  copy  off  the 
said  balances  of  the  accounts  on  a  sheet  of  paper,  ruled  as  below,  putting  the 
debtor  balances,  with  their  names,  on  the  debtor  side,  and  the  creditor  balances 
on  the  creditor  side — in  the  following  manner  : — 


Dr. 


TRIAL    BALANCE. 

Balances  of  January  30,  1858. 


25 
Cr. 


2 

4 

5 

6 

10 

11 

12 

13 

i 

Cash,* 

Merchandise,  . .  . 
Bills  Receivable* 
Store  Fixtures, . . 
C.  Lawrence,  . . . 
0.  Otis  &  Co., . . 
S.  H.  Lovell,  . .  . 
W.  Blakeley,  . . . 

$33,205 
5,515 
8,616 
300 
140 
200 
250 
200 

00 
00 
00 
00 
00 
00 
00 
00 

1 
1 

6 

7 

T.  Blanchard, . . . 
C.  C.  Marsh, .... 
Bills  Payable,*.. 
Discount  &  Int'st. 

$26,920 

16,105 

4,680 

121 

00 
00 
00 
00 

/ 

48,426 

00 

48,426 

00 

i 

! 

l 

i 
i 

i 

*  These  three  accounts — Cash,  Bills  Receivable,  and  Bills  Payable,  have  their  duplicates, 
that  is  to  say,  there  are  two  Cash  accounts,  one  in  the  Leger  and  one  in  the  Cash  Book  ;  those 
two  accounts  of  the  same  class  of  property  should  correspond,  i.  e.  should  show  the  same  bal- 
ance. The  Bills  Receivable  account  in  the  Leger,  has  its  duplicate  in  the  Bill  Book — the 
notes  unpaid  iu  this  book  should  tally  in  amount  with  the  balance  of  the  account  in  the 
Leger.  The  Bills  Payable  account  in  the  Leger,  should  also  tally  with  the  notes  unpaid  in 
the  Bill  Book.     //  is  very  important  to  compare  the  duplicate  accounts. 

If  the  entries  in  the  Journal  have  been  posted  correctly  to  the  Leger,  and  the 
additions  and  subtractions  have  been  made  correctly,  the  amounts  of  both  col- 
umns will  be  equal.  On  the  contrary,  if  the  totals  are  not  equal,  it  is  certain 
evidence  that  there  are  errors,  which  we  must  endeavor  to  find  and  correct. 
Whatever  may  be  the  nature  of  the  error,  it  may  be  found  by  referring  to  the 
Journal  to  ascertain  if  the  Sundries  In  every  entry,  are  added  correctly,  or  equal 
to  the  amounts  extended  into  the  last  column  ;  because  if  the  sums  of  the  debt- 
ors and  creditors  do  not  equal  each  other  in  each  Journal  entry,  they  can  not  be 
equal  in  the  Leger.  See,  also,  if  all  the  sums  have  been  posted,  or  carried  to 
the  Leger  correctly  ;  and  next,  complete  the  examination  by  re-adding  and  re- 
subtracting  all  the  accounts  or  columns,  to  ascertain  if  the  balances  are  correct. 
If  the  first  examination  has  not  produced  the  result  desired,  it  must  be  repeated 
until  the  debtor  and  creditor  columns  of  the  Trial  Balance  come  out  equal. 
When  completed,  fold  it  up,  and  endorse  it,  Trial  Balance  of  January  30,  1858. 

Note. — It  will  be  well  not  to  leave  the  Trial  Balance  in  the  counting-room,  with  the 
books,  because,  in  case  of  fire,  and  the  destruction  of  the  Books,  it  would  be  almost  as  val- 
uable to  us  as  the  books  themselves. 

1 


JOURNALIZING. 

The  Trial  Balance  proves,  beyond  a  reasonable  doubt,  the  three  following  im« 
portant  operations,  but  no  other,  viz  : — 

1st.  It  proves  that  the  sums  are  carried  from  the  Journal  to  the  Leger  cor- 
rectly. 

2d.  That  the  additions  of  the  accounts  in  the  Leger  are  correct ;  also  those  in 
the  Journal. 

3d.  That  the  balances  (or  differences)  of  the  accounts  in  the  Leger  have  been 
calculated  correctly. 

Of  course,  a  Trial  Balance  does  not  prove  Journalizing.  The  principal  of 
the  Trial  Balance  is  this  :  In  every  Journal  entry,  the  debtor  and  creditor  sums 
equal  each  other  ;  therefore,  if  those  same  sums  are  transferred  correctly  to  the 
Leger,  it  is  evident  that  the  debtor  and  creditor  balances  taken  from  the  Leger, 
ought  also  to  be  equal,  there  being  no  other  sums  in  the  latter  than  those  con- 
tained in  the  former,  and  whatever  is  debtor  in  the  Journal  is  debtor  in  tho 
Leger. 


BUSINESS    OF    FEBRUARY. 


Embracing  Entries  of  twenty-four  Transactions,  relating  to — Paying  Notes  before  Due — 
Petty  Expenses — Consigning — Shipping  for  account  of  others — Failure  and  Compromise — 
Importing  Goods — Accepting  Drafts — Drafts  or  Orders  at  Sight — Buying  Vessels — Draw- 
ing Bills  of  Exchange — Bartering — Accommodation  Notes — Discounting  Notes — Insuring 
Shipments  and  Vessels. 

THE    RULE. 

Every  person  or  object  that  owes  us,  is  debtor Dr. 

Every  person  or  object  that  we  owe,  is  creditor Cr. 

Apply  this  rule,  thus  :  Read  and  reflect  well  on  the  transaction  expressed  in 
the  Day  Book,  and  then  endeavor  to  discover  the  answer  to  these  questions  : — 

Who  or  what  owes  us  ?  And  write  the  answer  down  as Dr. 

Whom  or  what  do  we  owe  ?     And  write  the  answer  down  as Cr. 

Day  Book — February  2. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Cash 
Book,  Sales  Book,  and  Bill  Book,  and  gives  the  following  entry  for  the  Jour- 
nal : — 


JOURNALIZING.  v27 

Bills  Payable  (are)  Dr.  (to  us)  $1,080  00 

( We  are  Dr.)  To  Merchandise $550  00 

"      "    Cash 525  32 

"       "    Discount 4  68      1,080  00 

Elucidation-. — The  note  we  now  pay  and  cancel,  was  issued  by  Mr.  Blanchard 
before  this  partnership  commenced,  and  is  one  of  those  debts  assumed  by  the  firm  ; 
consequently  it  became  our  note.  (When  we  say  our  notes,  we  mean  notes  of 
which  we  are  the  authors,  or  which  we  have  signed,  and  not  notes  belonging  to 
us  as  our  property.)  The  note,  under  the  name  of  Bills  Payable,  is  debtor,  be- 
cause it  owes  us,  we  having  paid  it  what  we  owed  it.  Had  we  paid  a  person 
what  we  owed  him,  he  would  be  debtor  ;  the  note  is  debtor  for  the  same  reason. 

Merchandise  and  Cash  are  creditors,  because  we  owe  them  for  contributing 
to  pay  our  note  for  us. 

We  have  an  account  called  Discount  and  Interest,  which  we  consider  a  branch 
of  our  business,  and  which  we  treat  as  an  individual — making  it  debtor  when  it 
owes  us,  and  creditor  when  we  owe  it.  In  this  transaction,  Discount  paid  a 
part  of  our  note  for  us  ;  therefore  we  owe  it,  and  it  is  a  creditor  for  $4,68  :  Dis- 
count has  produced  us  $4,68. 

Note. — The  transactions  of  February  are  not  as  simple  as  those  of  January.  If  the  read- 
er finds  it  difficult  to  understand  them,  he  had  better  rejournalize  January  before  he  proceeds 
with  February. 

Day  Book — February  2.    (2d  entry  of  this  date.) 

The  second  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  Cash 
Book,  and  gives  the  following  entry  in  the  Journal : — 

Store  Expenses  Dr. 

To  Cash $65  00 

Elucidation. — The  various  incidental  expenses  of  the  store,  such  as  rent,  clerk- 
hire,  advertising,  fuel,  gas,  &c,  form  a  branch  of  our  business,  which  we  call 
"Store  Expenses." 

Store  Expenses  are  debtor,  because  they  owe  us  what  they  have  cost  us.  We 
are  debtor  to  Cash  for  having  paid  the  amount  of  those  expenses  for  us  ;  there- 
fore, that  branch  of  our  business  called  Store  Expenses  is  the  debtor,  and  Cash 
is  the  creditor. 

Day  Book — February  4. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  entries  in  the  Cash 
Book,  and  Sales  Book,  and  gives  the  following  entry  for  the  Journal : — 

Shipment  to  New  Orleans  Dr.  To  Sundries $1,822  22 

To  Merchandise $1,122  22 

"    Cash 100  00  1,822  22 


Elucidation. — The  property  shipped  in  this  transaction  owes  us  for  the  amount 
it  has  cost  us  in  its  present  situation,  which  is  $1,822.22.     The  consignees  in 


2S  JOURNALIZING. 

New  Orleans  do  not  owe  us,  because  we  have  not  sold  the  goods  to  them  ;  the 
goods  are  still  ours,  being  merely  sent  to  them  to  be  sold  for  us.  No  one  can 
owe  us  for  anything  which  is  ours  ;  there  must  be  a  change  in  the  ownership. 

We  owe  to  Merchandise  and  Cash  for  haying  contributed  their  sums  in  making 
up  the  shipment.    Enter  the  cash  in  the  Cash  Book. 

When  the  property  shipped  belongs  to  us,  we  give  it  the  title  of  "  Shipment" 
to  such  a  place,  or  "  Consignment "  to  such  a  person. 

The  entry  in  the  Sales  Book  would  consist  of  a  copy  of  the  invoice  sent  to 
Lockhart  &  Arrott ;  where  shipments  are  frequent,  a  book  is  devoted  to  this  pur- 
pose.    It  is  called  "  Invoice  Outward." 

Day  Book — February  9. 

The  transaction  of  this  date  in  the  Day  Book  requires  also  an  entry  in  the 
Cash  Book,  and  gives  the  following  entry  for  the  Journal : — 

Sundries  Dr.  To  William  Blakeley . . . .  $200  00 

Cash $100  00 

Profit  and  Loss 100  00    200  00 


Elucidation. — "  Profit  and  Loss"  is  the  name  which  our  business  receives  in 
our  books.  Our  business,  in  this  transaction,  goes  against  us,  and  causes  our 
losing  $100  ;  therefore  it  owes  us,  and  consequently  is  debtor. 

Cash  is  debtor,  because  in  it  W.  Blakeley  has  paid  us  half  the  debt  he  owed. 
Enter  the  cash  paid  in  the  Cash  Book. 

W.  Blakeley  is  creditor,  because  we  owe  him,  he  having  paid  us  what  he 
owed,  and  we  having  accepted  half  of  his  debt  for  the  whole.  The  sum  that 
Blakeley  owed  us  before,  Profit  &  Loss  and  Cash  owe  us  now. 

Day  Book — February  12. 

The  transaction  of  this  date  in  the  Day  Book  requires  entries  in  Cash  Book, 
Sales  Book,  and  Bill  Book,  and  gives  the  following  entry  for  the  Journal : — 

Merchandise  Dr.  To  Sundries $1,240  00 

To  Charles  Lawrence $    140  00 

"  Bill  Receivable 1,000  00 

«    Cash 100  00      1,240  00 

Elucidation. — Merchandise  has  cost  us  $1,240,  for  which  it  owes  us ;  and 
therefore  it  is  debtor. 

C.  Lawrence  is  creditor,  because  we  owe  him  for  having  drawn  on  him  for 
$140,  which  he  will  pay  ;  if  not,  the  draft  will  be  returned  to  us,  and  another 
entry  will  be  required.  We  say  nothing  of  the  draft,  because  it  is  not  in  our 
favor,  nor  is  it  against  us  ;  we  do  not  owe  it,  nor  does  it  owe  us. 

The  note  which  we  held  against  O.  Otis  &  Co.,  and  which  owed  us,  has  now 
paid  us  what  it  owed,  it  having  paid  for  us  part  of  Haven  &  Smith's  bill ;  there- 
fore we  owe  the  note  under  its  former  name,  "  Bills  Receivable,"  and  it  is  cred 
itor.    The  Bill  Book  entry  is  in  the  column  of  "  Remarks." 


JOURNALIZING.  29 

Cash  is  creditor,  because  we  owe  that  species  of  property  for  paying  the  sum 
of  $100  for  us  toward  this  purchase. 

Day  Book — February  12.    (2d  Entry  of  this  date.) 

The  second  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  the 
Bill  Book  under  "  Remarks,"  and  gives  the  following  entry  for  the  Journal : — 

William  Blakeley  Dr. 

To  Bills  Receivable $500  00 

Elucidation. — Mr.  Blakeley  is  debtor,  because  he  owes  us  for  the  amount  of 
his  note  which  we  hold  against  him,  which  is  due  and  not  paid. 

The  note  is  creditor,  because  its  time  having  expired,  it  has  paid  us  by  giving 
us  a  new  claim  on  its  author,  W.  Blakeley. 

Note.— When  notes  become  due  and  remain  unpaid,  the  best  way  is  to  charge  their  amounts 
to  their  drawers,  or  those  who  ought  to  pay  them ;  for  it  is  then  that  the  parties  owe  us. — 
Before  the  notes  were  due,  we  could  demand  nothing  of  the  persons  ;  the  notes  alone  were 
responsible,  but  after,  the  parties  owe  and  may  be  sued. 

Day  Book — February  13. 

The  transaction  of  this  date  in  the  Day  Book  gives  the  following  entry  in  the 
Journal : — 

Merchandise  Dr.  To  Sundries $6,533  1 1 

To  Walter  Howard $4,888  89 

"    Bills  Payable 1,222  22 

"   Cash ( 422  00   6,533  11 


Elucidation. — Merchandise  owes  us  for  the  amount  it  has  cost  us,  which  con- 
sists of  its  first  cost  in  London,  the  amount  of  duties,  and  the  freight — the  last 
two  being  paid  here. 

W.  Howard  is  creditor,  because  we  owe  him  for  the  amount  of  the  goods  he 
sends  to  us  according  to  our  request  or  order. 

In  changing  the  £1,100  sterling  to  dollars,  the  £1  is  calculated  at  the  old  par 
value — $4.44.  We  agree  with  many  in  thinking  that  a  value  nearer  the  true 
one  should  be  used  in  transactions  involving  English  money  ;  but  it  is  difficult  to 
change  a  custom.  The  present  par  value  of  the  pound  sterling  is  $4.84.  (See 
calculations  at  the  end  of  this  book.j 

Bills  Payable  are  creditor,  because  we  owe  our  notes  which  we  have  issued 
against  us  in  payment  of  the  duties  :  the  notes  pay  the  duties  for  us.  Enter 
these  in  Bill  Book. 

Note. — Formerly,  the  revenue  law  allowed  credit  on  duties,  and  notes  or  bonds  were  taken 
at  the  Custom  houses  ;  but  the  duty  on  imports  is  now  payable  in  cash  only. 

To  Cash  we  owe,  because  it  has  paid  the  freight  and  charges  on  the  goods  for 
ua     Cash,  therefore,  is  a  creditor.     Enter  in  Cash  Book. 


30  JOURNALIZING. 

Day  Book — February  13.    (2d  Entry  of  this  date). 

The  second  transaction  of  this  date  in  the  Day  Book  requires  entries  in  tli6 
Bill  Book,  and  gives  the  following  entry  for  the  Journal : — 

Sundries  Dr.  To  Sundries. 

Bills  Receivable $251  31 

Profit  and  Loss 250  00  $501  37 

To  William  Blakeley 500  00 

"    Interest 1  37    501  37 

Elucibation. — First,  read  the  transaction  carefully,  with  a  view  to  find  what 
owes  you  ;  and  whatever  you  think  owes  you,  write  it  down  as  Dr'.  Then  read 
again,  to  find  what  you  owe  ;  and  write  that  down  as  Cr. 

The  draft  or  order  drawn  on  S.  H.  Lovell,  and  accepted  (agreed  to),  owes  us 
for  the  amount  it  shows  on  its  face,  including  the  $1.37  for  interest.  Our  claim 
for  the  $251.37  consists  in  the  draft,  which  must  owe  us  until  its  time  expires  ; 
Lovell  may  then  owe  us,  but  he  does  not  now.     Enter  the  draft  in  the  Bill  Book. 

Our  business,  under  the  name  of  Profit  and  Loss,  owes  us,  because  it  has  been 
the  cause  of  the  loss  we  have  sustained  in  this  settlement  with  W.  Blakeley. 

We  owe  to  Interest,  or  Interest  is  a  creditor,  because  that  branch  of  our  busi- 
ness has  produced  us  $1.37,  which  sum  is  included  in  the  note. 

Mr.  Blakeley  is  creditor,  because  we  owe  him  for  paying  us  what  he  owed — 
the  balance  of  his  account,  $500.  He  has  paid  us  in  full,  although  we  have  re- 
ceived only  half,  because  we  have  accepted  that  half  for  the  whole  ;  he  therefore 
must  be  credited  for  what  he  owed  us. 

Day  Book — February  16. 

The  transaction  of  this  date  in  the  Day-Book  requires  an  entry  in  the  Bill 
Book,  and  gives  the  following  entry  for  the  Journal : — 

Walter  Howard  Dr. 

To  Bills  Payable $4,444  44 

Elucibation. — In  accepting  this  draft  we  become  responsible  for  its  amount ; 
therefore  W.  Howard  owes  us.  To  draw  on  us  is  to  order  us  to  pay  a  certain 
sum,  and  accepting  the  draft  is  agreeing  to  do  so. 

Bills  Payable,  the  name  given  to  the  draft  that  we  have  accepted,  are  creditor, 
because  we  owe  the  draft  which  we  have  issued  against  us,  and  which  we  shall 
pay  at  its  maturity,  in  whose  ever  possession  it  may  be. 

Note.— To  accept  a  draft,  is  to  write  your  name  across  its  face.  If  the  draft  reads  so  many 
days  after  sight,  the  date  should  be  with  the  signature,  thus  : — 

"  Accepted,  February  16, 1850. 

"  Blanchakd  &  Marsh." 
Day  Book — February  17. 

The  transaction  of  this  date  in  the  Day  Book  requires  entries  in  the  Sales 
Book  and  Bill  Book,  and  gives  the  following  entry  for  the  Journal : — 


JOURNALIZING. 


jyo  S 


Bills  Payable  Dr. 

To  Merchandise $1,500  00 

Elucidation. — The  note,  in  this  transaction,  was  issued  by  us  some  time  since, 
and  held  us  responsible ;  now  we  have  paid  it,  it  owes  us,  and  becomes  our  debtor. 
Requires  an  entry  in  the  Bill  Book  under  "  Remarks." 

Merchandise  is  the  property  in  which  we  paid  the  amount  of  the  note  ;  there- 
fore we  owe  it  for  paying  our  note  for  us.     Sales  book  entry — omitted. 

Note. — We  have  said,  that  when  we  pay  a  person  a  sum  that  we  owed  him,  he  owes  us,  or 
becomes  our  debtor ;  so,  when  we  pay  our  note,  for  the  same  reason  it  owes  us,  or  becomes 
our  debtor. 

Day  Book — February  20. 

The  transaction  of  this  date  in  the  Day  Book  requires  entries  in  Cash  Book 
and  Sales  Book,  and  gives  us  the  following  entry  for  the  Journal : — 

Walter  Howard  Dr.  To  Sundries $2,914  29 

To  Merchandise $2,130  00 

"    Cash 160  15 

"    Commission 84  14  2,914  29 


Elucidation. — W.  Howard  owes  us,  because  the  goods  were  shipped  at  his 
request,  or  according  to  his  order,  they  are  sold  to  him  ;  he  therefore  is  debtor. 

To  Merchandise  we  are  indebted,  because  we  have  sold  it,  and  it  has  produ- 
ced us  $2,130,  for  which  amount  Howard  owes  us. 

To  Cash  we  are  indebted,  because  it  paid  the  amount  of  insurance  and  other 
expenses  for  us.     Cash  Book  entries  required. 

To  Commission,  as  a  branch  of  our  business,  we  are  indebted,  because  it  pro- 
duces us,  in  this  transaction,  $84.14. 

The  amount  of  the  creditor  sums  in  the  above  entry  equals  the  debtor  sum — 
that  is,  the  sum  that  Howard  owes  us.  As  we  have  before  said,  the  debtor  and 
creditor  will  and  must  always  be  equal. 

Day  Book — February  21. 

The  transaction  of  this  date  in  the  Day  Book  gives  us  the  following  entry  for 
the  Journal : — 

Merchandise  Dr. 

To  Merchandise $1,530  00 

Elucidation. — There  are,  in  this  transaction,  two  kinds  of  merchandise  ;  one 
we  have  bought,  and  the  other  we  have  sold.  That  which  we  have  bought,  owes 
us  the  value  it  has  cost  us  ;  and  to  that  we  have  sold,  we  owe  for  the  value  it 
has  produced.  One  kind  is  debtor,  and  the  other  is  creditor.  This  would  re- 
quire entries  in  the  Invoice  and  Sales  Books,  did  we  keep  them  up. 

Day  Book — February  21.    (2d  entry  of  this  date.) 

The  transaction  of  this  date  in  the  Day  Book  requires  entries  in  the  Bill  Book, 
and  gives  us  the  following  entry  for  the  Journal : — 


A 


JOURNALIZING. 

Bills  Receivable  Dr. 

To  Bills  Payable $800  00 

Elucidation. — In  this  transaction,  we  exchange  notes  with  Mr.  Bernard.  His 
note  is  in  our  favor,  called  Bills  Receivable,  and  owes  us  for  the  sum  it  is  drawn 
for.  Our  note  stands  out  against  us,  is  called  Bills  Payable,  and  we  owe  it  for 
the  sum  it  is  drawn  for.    Requires  two  entries  in  the  Bill  Book. 

Note. — Notes  that  originate  in  this  way,  are  made  and  exchanged  for  the  purpose  of  get- 
ting endorsers  and  having  the  notes  discounted.  In  the  above,  we  endorse  for  Mr.  Bernard, 
and  he  endorses  for  us. 

Day  Book — February  23. 

The  transaction  of  this  date  in  the  Day  Book  requires  entries  in  the  Bill  Book 
and  Cash  Book,  and  gives  us  the  following  entry  for  the  Journal : — 

Sundries  »         Dr.  To  Merchandise $1,620  00 

Bills  Receivable $  500  00 

Cash 120  00 

James  Truman 1,000  00  1,620  00 

Elucidation. — Here,  as  there  are  more  than  one  debtor,  we  head  them  with 
the  word  "  Sundries." 

Bills  Receivable  is  the  title  given  to  the  note  that  we  hold  against  J.  Truman. 
This  note  owes  us  $500  ;  it  is  therefore  debtor. 

Cash  owes  for  the  amount  paid  to  us  in  that  class  of  property. 

J.  Truman  owes  us,  because  the  balance  of  the  bill  of  goods  sold  to  him  re- 
mains unpaid.  * 

To  Merchandise  we  acknowledge  ourselves  indebted,  because  it  has  produced 
us  the  sum  of  $1,620,  it  is  therefore  creditor. 

Day  Book — February  24. 

The  transaction  of  this  date  in  the  Day  Book  requires  entries  in  the  Cash 
Book  and  Bill  Book,  and  gives  us  the  following  entry  for  the  Journal : — 

Sundries  Dr.        To  Bills  Receivable $2,000  00 

Cash $1,969  00 

Discount 31  00  2,000  00 


Note. — To  get  a  note  discounted,  means  to  obtain  the  money  for  it  before  it  is  due.  The 
bank  deducts  from  the  amount  of  the  note  a  certain  sum  for  interest  or  discount,  according 
to  the  time  the  note  may  have  to  run,  and  pays  us  the  balance  in  cash. 

Elucidation. — Cash  owes  us,  because  the  sum  the  bank  has  paid  us,  is  paid  to 
us  in  that  property.  The  class  of  property  called  Cash,  owes  us  to-day  $1,969 
more  than  it  owed  us  yesterday,  because  we  have  so  much  more  value  invested 
in  it.  It  will  be  better  to  make  two  entries  in  the  Cash  Book — i.  e.,  receive 
$2,000,  and  pay  out  $31. 

Discount  has  cost  us,  in  this  transaction,  $31  ;  therefore  it  owes  us. 

The  note  has  paid  us  the  sum  it  owed  ;  therefore  it  is  a  creditor.  Although 
we  do  not  get  the  face  of  the  note,  we  consent  to  take  less  ;  and  therefore  the 


JOURNALIZING. 


note  must  be  credited  for  the  whole  amount  it  owed — $2,000.  It  will  be  seen 
that  Cash  and  Discount  are  the'  objects  which  owe  us  now,  the  amount  which 
Bills  Receivable  owed  us  before. 

Day  Book — February  25. 

The  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  the  Cash 
Book,  and  gives  us  the  following  entry  for  the  Journal : — 

Schooner  Josephine  Dr.  To  Sundries        $5,000  00 

To  Walter  Howard $2,222  22 

"  Exchange VV\  IS 

"  Cash 2,600  00  5,000  00 

Elucidation. — The  schooner  owes,  because  she  has  cost  us  $5,000  ;  she  is 
therefore  debtor. 

We  are  debtor  to  W.  Howard,  because  we  have  drawn  on  him  for  $2,222  22. 
To  draw  on  a  person,  is  to  order  him,  by  means  of  a  written  order,  to  pay  a  cer- 
tain sum  for  us.  The  Bill  of  Exchange  does  not  appear  in  the  Bill  Book — it  is 
not  Bills  Receivable  or  Bills  Payable  to  us. 

Exchange  is  creditor,  because  that  branch  of  our  business  denominated  Ex- 
change, has  produced  us  $117.78.  We  sold  the  draft,  or  bill  of  exchange,  at  a 
premium,  which  we  consider  a  gain  arising  from  the  advantageous  position  of 
funds.     The  premium  goes  to  Capt.  Davis,  in  part  payment  of  the  schooner. 

Cash  is  creditor,  because  we  owe  it  as  a  class  of  property  for  paying  part  of 
the  $5,000. 

Note  1. — Sometimes  the  gain  or  loss,  arising  from  the  sale  of  drafts  or  bills  of  exchange, 
belongs  to  the  one  who  draws,  and  sometimes  to  the  party  drawn  on,  or  remitted  to  :  this 
depends  on  who  placed  the  funds  to  draw  against,  and  other  circumstances.  In  this  series  of 
transactions,  we  shall  suppose  the  premium,  or  discount,  to  be  the  gain  or  loss  of  the  drawer, 
unless  otherwise  expressed. 

Note  2.— It  should  be  understood  that,  when  we  see  it  stated  that  exchange  on  England  is 
at  8  or  9  per  cent,  premium,  it  is  really  only  about  par.  The  premium,  being  calculated  on 
the  old  par  value  of  $4.44  to  the  £,  must  include,  under  the  name  of  premium,  the  difference 
between  the  nominal  value  ($4.44)  and  the  true  value  ($4.84) — about  40  cents.  Nine  per 
cent,  premium  on  $4.44  would  bring  the  £  up  to  $4.84, — equal  to  no  premium. 

Day  Book — February  26. 

The  transaction  of  this  date  in  the  Day  Book  gives  the  following  entry  for  the 
Journal : — 

William  Evans  Dr. 

To  James  Truman $1,000  00 

Elucidation. — We  receive  an  order  at  sight  on  Wm.  Evans,  who  accepts  but 
does  not  pay  it ;  and  the  order  being  due,  it  is  charged  in  account  by  mutual 
consent.     Evens  owes  us,  because  the  order  is  due  and  not  paid. 

To  J.  Truman  we  owe  for  the  amount  of  the  order  he  has  given  us  on  W 
Evans. 

5 


34  JOURNALIZING. 

Note. — We  see  in  this  transaction,  also  in  the  one  of  the  25th,  an  important  paper  rece 
in  one  case,  and  delivered  in  the  other,  which  makes  no  part  of  the  Journal  entry  ;  the  rea- 
son is,  that  these  papers  do  not  owe  us,  nor  do  we  owe  them.  Do  not,  therefore,  trouble  your- 
self with  any  such  rule  as,  "  What  you  receive  is  debtor  to  what  you  give." 

Day  Book — February  2t. 

The  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  the  Bill 
Book,  and  gives  the  following  entry  for  the  Journal  : — 

Shipment  to  Port  au  Prince              Dr.            To  Sundries  $3,908  00 

To  Merchandise $1,200  00 

"  Bills  Payable 2,190  00 

"   Charles  Lawrence 288  00 

"   Schooner  Josephine 230  00  3,908  00 

Elucidation. — All  the  articles  shipped  in  this  transaction  compose  and  consti- 
tute a  particular  property  to  which  we  give  the  title  of  "  Shipment  to  Port  au 
Prince,"  which  we  say  owes  us  the  entire  amount  we  have  invested  in  it  ;  the 
shipment  is  therefore  debtor. 

H.  B.  "Walker  &  Co.,  to  whom  the  goods  are  consigned,  do  not  owe  us,  be- 
cause the  goods  are  still  our  property  and  not  sold  to  them.  To  the  creditors, 
being  more  than  one,  we  give  the  preface  of  "  Sundries." 

To  Merchandise  we  are  indebted  for  contributing  for  us  toward  the  shipment 
the  sum  of  $1,200 — the  amount  of  the  goods  taken  from  our  store  and  given  to 
Mr.  Fisher  for  the  domestic  goods  which  form  part  of  the  shipment. 

To  Bills  Payable  we  owe  for  the  amount  of  our  note  given  to  Dallet  &  Co.,  in 
payment  of  our  purchase  of  them. 

To  our  schooner  we  owe  for  the  value  of  the  freight  (calculated  in  advance) 
on  the  goods,  which  she  has  produced  or  saved  us. 

Day  Book — February  28. 

The  first  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  the 
Bill  Book  and  Cash  Book,  and  gives  the  following  entry  for  the  Journal : — 

Shipment  to  Port  au  Prince  Dr.  To  Sundries        $201  56 

To  Bills  Payable $  81  56 

"  Cash 120  00     201  56 


Elucidation. — The  shipment  owes  us,  because  it  has  cost  us  for  insurance,  and 
various  expenses  in  shipping  the  goods. 

Bills  Payable  are  creditor,  because  we  owe  our  note  given  to  the  Insurance 
company  in  payment  for  the  premium  or  cost  of  insurance. 

Cash  is  creditor,  because  we  owe  it  for  paying  for  us  the  expenses. 

Day  Book — February  28.    (2d  Entry  of  this  date.) 

The  second  transaction  of  this  date  in  the  Day  Book  requires  an  entry  in  the 
Oash  Book,  and  gives  the  following  entry  for  the  Journal : — 


TRIAL    BALANCE. 


35 


Schooner  Josephine  Dr. 

To  Cash $26  00 

Elucidation. — The  insurance  is  an  expense  on  the  schooner,  and  she  owes  us 
for  it ;  therefore  she  is  debtor. 
Cash  is  creditor,  because  it  was  cash  that  paid  the  insurance  for  us. 


TRIAL    BALANCE. 


Having  Journalized  the  transactions  of  February,  the  pupil  will  now  proceed 
to  post — that  is,  to  enter  in  the  Leger  from  the  Journal,  as  explained  at  the  end 
of  January.  When  the  posting  is  finished,  he  will  make  a  Trial  Balance.  Iu 
adding  the  accounts  in  the  Leger,  the  sums  of  January  must  be  included.  The 
Trial  Balance  of  the  Leger  at  this  date  follows.  Balance  the  Cash  Book,  and 
compare  the  duplicate  accounts. 


Dr. 


Balances  of  February  28,  1858. 


Cr. 


2 

4 

5 

6 

1 

8 

8 

11 

12 

13 

16 

16 

Cash, 

$31,120 

2,905 

8,981 

300 

4,951 

65 

350 

200 

250 

301 

1,822 
4,109 

53 
89 
31 
00 
00 
00 
00 
00 
00 
62 

22 
56 

1 
1 

6 
1 
9 
9 
10 
14 

T.  Blanchard, 

C.  C.  Marsh, 

Bills  Payable, 

Discount  &  Int'st. . 

C.  Lawrence,  .... 

$26,920 

16,105 

10,838 

96 

84 

111 

288 

260 

00 

00 
22 
05 
14 
18 
00 
00 

Merchandise,  .... 

Bills  Receivable . . 

Store  Fixtures, . . . 

Schooner  Josephine 

Store  Expenses . . . 

Profit  and  Loss, . . 

0.  Otis  &  Co., . . . 

S.  H.  Lovell,  .... 

W.  Howard,  .... 

Shipment  to  New) 
Orleans, J 

Shipment  to  Port ) 
au  Prince, . . . .  j 

/ 

55,369 

19 

55,369 

19 

36  JOURNALIZING. 

BUSINESS    OF    MARCH. 

Embracing  Entries  of  twenty-six  Transactions,  relating  to — Delivering  per  Order — Re* 
ceiving  Consignments — Paying  Charges  on  Consignments— Selling  Consignments— Selling 
at  Auction — Collecting  Notes  and  Acceptances — -Receiving  Notes  with  Interest — Allowing 
for  Damages  in  Sales— Paying  Acceptances— Closing  Consignments— Rendering  Account 
Sales — Receiving  Account  Sales — Buying  in  Joint  Account—  Selling  in  Joint  Account — 
Receiving  our  Note  before  Due — Paying  Money  to  a  Partner — Buying  Bills  of  Fxchange 
— Closing  Account  of  Sales  in  Joint  Account — Rendering  Account  Sales  of  Merchandise 
in  Joint  Account. 

THE   RULE. 

Every  Person  and  Object  that  owes  us  is Dr. 

Every  Person  and  Object  that  we  owe  is Cr. 

The  best  method  of  applying  the  above  rule,  is  the  following  : — 

First,  understand  well  the  nature  of  the  transaction,  make  yourself  familiar 
with  its  details,  consider  yourself  the  person  that  performs  it  or  to  whom  it  occurs, 
and  then  ask  yourself — 

Who  or  what  owes  me  ?     And  write  down  the  answer  as  the Dr. 

Whom  or  what  do  I  owe  ?    And  write  down  the  answer  as  the Cr. 

The  sums  that  belong  to  these  answers  are  those  that  the  person  or  object  in 
reality  owes  us,  and  those  that  we  owe. 

Day  Book — Transaction  of  March  2. 

Elucidation. — C.  Lawrence  owes  us  in  this  transaction,  because  on  his  order 
we  delivered  the  goods  to  W.  Blakeley. 

Merchandise  is  creditor,  or  we  owe  to  Merchandise,  because  it  produces  us 
value  to  the  amount  of  $288. 

When  we  pay  a  sum  by  order  of  any  person,  it  is  evident  that  that  act  makes 
him  owe  us.  The  order  is  no  more  than  a  receipt  to  show  that  we  have  executed 
it.  It  has  not  the  requisites  to  make  it  a  note  in  our  favor  or  against  us  ;  it 
was  not  issued  by  us  with  our  signature,  as  it  would  have  been  had  it  been  our 
acceptance,  nor  does  it  promise  to  pay  us  its  sum  at  any  future  time.  No  Bill 
Book  entry. 

Day  Book — 2d  Transaction  of  March  2. 

The  transactions  relative  to  which  no  explanations  are  given,  are  considered 
sufficiently  simple  not  to  require  them,  provided  the  pupil  has  studied  with  atten- 
tion those  of  January  and  February. 

Day  Book — Transaction  of  March  3. 

Elucidation. — The  title  of  "De  Nones  Consignment"  is  given  to  the  goods 
that  Mr.  De  Nones  has  sent  to  us  to  be  sold  for  him,  or  for  his  account.  This 
consignment  can  owe  us  only  for  the  expenses  that  have  been  incurred  on  it  since 
in  our  hands — the  freight  and  duties. 

Cash  is  creditor,  because  in  it  we  paid  the  freight  and  duties. 

We  can  not  credit  J.  De  Nones  for  the  amount  of  the  goods  he  consigns  to 
us  ($2,100),  because  we  do  not  owe  him  that  sum.  The  goods  are  still  his  ;  we 
have  neither  bought  nor  ordered  them,  and  we  can  not  owe  a  person  for  what 
remains  his.     When  we  have  sold  the  consignment,  and  rendered  to  him  an  ac- 


JOURNALIZING  37 

count  of  the  sales,  then  we  may  owe  him  the  net  proceeds,  bnt  not  before. 
Sales  made  from  consignments  appear  first  in  the  common  Sales  Book,  and  from 
this  are  copied  into  a  Commission  Sales  Book. 

Day  Book — Transaction  of  March  4. 

Elucidation. — The  acceptance  which  we  have  held  until  this  date  against  Otis 
&  Co.,  became  due  this  day,  and  is  paid  in  cash. 

Cash  now  owes  us  for  the  sum  that  heretofore  the  acceptance  owed  ;  there- 
fore Cash  is  debtor.  The  acceptance  having  paid  us  what  it  owed  us,  becomes 
our  creditor — we  owe  it  the  sum  it  pays  us. 

Day  Book — 2d  Transaction  of  March  5. 

Elucidation. — The  balance  of  0.  Otis  &  Co.'s  account,  in  our  favor,  is  $700, 
which  is  considered  due  in  cash  ;  therefore,  in  giving  us  a  note  at  sixty  days,  it 
should  be  drawn  for  the  sum  that  will  be  due  sixty  days  hence — that  is,  the  note 
should  include  interest  corresponding  to  its  credit  or  time.  The  note  owes  us  for 
the  said  balance,  and  also  for  the  amount  of  interest  ;  for  both  of  which  it  is 
drawn  or  written. 

Interest  is  creditor,  because  we  owe  it  for  producing  us  $7.35. 

Note. — When  Interest  is  in  our  favor,  it  is  a  creditor,  because  we  owe  it  for  the  value  it 
produces.    When  it  is  against  us,  it  is  a  debtor,  because  it  owes  us  for  the  sum  it  costs  us. 

To  0.  Otis  &  Co.  we  are  indebted  for  the  balance  of  their  account,  which  they 
have  paid  us  in  their  note  ;  for  which  balance  the  note  is  now  our  debtor. 

Day  Book — Transaction  of  March  7. 

Elucidation. — In  this  transaction,  we  agree  to  an  allowance  in  favor  of  C. 
Lawrence,  on  a  purchase  of  a  former  date.  The  amount  of  the  allowance  we  do 
not  pay  ;  therefore  we  owe  him,  and  he  becomes  a  creditor  for  the  same. 

Day  Book — Transaction  of  March  9. 

Elucidation. — The  acceptance  now  paid  received  the  title  of  "  Bills  Payable," 
when  we  accepted  it  (February  16j,  since  which  time  it  has  stood  out  against 
us  as  our  note.  This  acceptance  now  owes  us,  because  we  have  paid  it  what  we 
owed  it. 

W.  Howard  does  not  owe  us  in  this  transaction,  because  the  draft,  now  paid, 
was  our  acceptance.  At  the  time  we  put  our  name  on  it,  he  began  to  owe  us, 
and  he  then  became  our  debtor. 

Day  Book — Transaction  of  March  10. 

Elucidation. — Commission  owes  us  nothing  in  this  transaction,  because  iu 
reality  we  sell  the  goods  for  only  the  sum  that  we  receive  for  them — being  the 
net  proceeds,  $1,233.27  ;  for  which  sum  Cash  owes  us,  and  we  owe  to  the  con- 
signment. 


38  JOURNALIZING. 

Note — It  is  not  necessary  to  give,  in  the  Day-Book,  the  particulars  of  the  quantity,  quality 
and  prices,  of  goods  sold — these  belong  more  to  the  Sales  Book  than  the  Day  Book  ;  but  as 
it  is  not  thought  necessary  to  continue  the  Sales  Book  beyond  a  few  examples,  the  former 
book  is  rendered  more  complete  by  its  embracing  some  description  of  the  goods  sold,  particu- 
larly when  those  goods  are  not  ours. 

Day  Book — 2d  Transaction  of  March  10. 

Elucidation. — To  receive  merchandise  to  our  account,  means  that  we  have 
bought  it,  or  taken  it  as  our  own.  And  now,  since  the  olives  are  ours,  we  give 
them  the  title  of  Merchandise  ;  and  as  they  owe  us,  we  call  them  debtor.  To 
the  consignment  we  owe,  because  it  has  produced  us  the  olives,  or  their  value. 

Day  Book — Transaction  of  March  12. 

Elucidation. — The  merchandise,  or  olives,  sold  to  P.  Harris  in  this  entry,  does 
not  belong  to  the  consignment  of  De  Nones,  having  been  made  ours  in  a  previous 
entry. 

Day  Book — Transaction  of  March  14. 

Elucidation.— In  order  to  ascertain  the  amount  of  the  sales  of  this  consign- 
ment, and  to  see  if  it  agrees  with  the  Commission  Sales  Book,  it  is  necessary  to 
post  all  the  sums  belonging  to  the  consignment,  from  the  Journal  to  the  Leger, 
and  to  compare  the  Leger  account  with  the  account  in  the  Commission  Sales 
Book. 

The  entry  under  this  date  in  the  Day  Book  shows  that  we  have  made  an 
"Account  Sales"  of  the  goods  belonging  to  J.  De  Nones,  for  the  purpose  of 
closing  the  account  of  those  goods,  and  transferring  the  balance  to  accounts 
where  it  more  properly  belongs. 

In  Journalizing  this  entry,  we  say  that  we  owe  to  the  following  : — 

To  Commission  we  owe,  because  it,  as  a  branch  of  our  business,  has 
produced  us $215  11 

To  Store  Expenses  we  owe,  because  that  branch  of  our  business  has 

produced  us  the  amount  of  our  charges  for  storage,  &c 52  24 

To  Joseph  De  Nones  we  owe  for  the  net  proceeds  of  the  goods  we 

have  sold  for  him 3,531  32 

Amount  that  we  owe 3,199  21 

which  makes  the  balance  of  the  account  in  the  Leger.  

Now,  then,  the  consignment  must  owe  us,  and  become  debtor  for  the  balance 
that  appears  on  its  credit  side,  because  we  divide  said  balance,  and  carry  it  tc 
the  credit  of  the  different  accounts  above  named.  This  last  entry,  when  posted, 
will  close  the  consignment.    Rule  and  foot  the  account. 

The  "  Account  Sales,"  which  we  render  to  J.  De  Nones,  will  be  found  among 
the  Forms,  at  the  end  of  this  volume. 

Day  Book — Transaction  of  March  16. 

Elucidation. — Lockhart  &  Arrott  owe  us  for  the  amount  of  the  net  proceeds 


JOURNALIZING.  39 

of  our  shipment  to  them,  they  having  sent  us  an  account  of  the  sales  without  re- 
mittance of  funds. 

"  Shipment  to  N.  Orleans"  being  the  title  we  gave  the  goods  when  we  shipped 
them,  we  should  now,  in  speaking  of  that  property,  use  the  same  name.  Shipment 
to  New  Orleans  is  creditor,  because  we  owe  it  the  sum  it  has  produced  us,  and 
for  which  L.  &  A.  are  responsible. 

Note.— Here  we  have  the  same  transaction  as  that  of  the  previous  entry,  with  the  differ- 
ence only,  that  in  one  case  we  send  away  an  "  Account  Sales,"  and  in  the  other  we  receive 
one. 

Day  Book — Transaction  of  March  18. 

Elucidation. — Cash  owes  us  for  the  sum  that  P.  Harris  has  advanced  to  us  ; 
and  we  owe  him,  because  we  have  not  yet  used  the  money  for  the  object  for 
which  he  gave  it  to  us. 

Day  Book — Transaction  op  March  20. 

Elucidation. — We  give  the  title  of  "  Merchandise  Company  1,"  or  "  Com- 
pany 1  Merchandise,"  or  merchandise  joint  account,  to  the  flour  which  we  have 
bought  in  joint  account  with  Mr.  Harris — a  name  to  distinguish  it  in  our  books 
from  goods  that  belong  solely  to  us. 

The  flour  does  not  owe  us  for  its  whole  cost,  but  only  for  the  cost  of  our  half 
of  it — $2,000  :  it  is  not  responsible  to  us  for  Mr.  Harris's  half,  or  what  it  costs 
him.  P.  Harris  owes  us  for  his  part  of  the  purchase,  because  we  paid  for  his  part 
of  the  flour. 

Day  Book — Transaction  of  March  21. 

Elucidation. — The  flour  costs  us  only  half  of  the  amount  received,  and  it  can 
owe  us  no  more  than  our  interest  in  it— -$1,181.50.  We  have  received  twice  that 
amount ;  but  Journalizing  is  not  to  show  what  we  receive  or  deliver,  but  what  are 
our  debtors  and  creditors. 

Mr.  Harris  is  creditor,  because  we  owe  him  for  our  half  of  the  flour  :  he  fur- 
nishes our  half  for  us.  Were  we  to  credit  Mr.  Harris  for  all  this  flour,  we 
would  be  making  the  same  entry  as  if  we  had  bought  it  all  of  him  ;  which  is  not 
the  case,  because,  it  being  on  joint  account,  half  remains  his.  It  being  in  our 
store  makes  no  difference  in  the  proprietorship. 

Day  Book — Transaction  of  March  23. 

Elucidation. — In  the  transaction  of  this  date,  we  receive  our  own  note  in  part 
payment  for  the  flour  ;  and  as  the  note  is  not  due,  we  are  allowed  discount  for 
the  time  it  wants  of  being  due.  Discount  is  therefore  in  our  favor,  and  must  be 
credited  for  what  it  produces  us — $9.10. 

Bills  Payable  owes  us  for  the  amount  it  was  drawn  for — $2,100 — although  we 
do  not  give  that  sum  for  it,  yet  with  what  we  give  we  pay  the  whole. 

The  flour,  under  the  name  of  "  Company  1  Merchandise,"  is  creditor,  because 
it  produces  us  $3,000. 

Note. — Accounts  of  merchandise  in  company,  or  in  joint  account,  generally  show  on  the 
debtor  side  only  half  of  the  amount  purchased,  while  on  the  credit  side  they  show  the  total 
sales.  This  may  appear  irregular,  but  it  is  not  so.  The  property  can  not  be  debtor  (that 
is,  owe  us)  for  more  than  our  interest  in  it,  nor  can  it  be  debtor  in  our  books  for  what  it  may 
have  cost  the  other  partner.  But  when  we  sell  the  goods,  they  produce  into  our  hands  the 
total  amount  of  the  sales,  and  consequently  we  have  a  very  good  reason  for  crediting  them 
for  the  same. 


40  J  O  U  II  N  A  L  I  Z  I  N  G  . 

Day  Book — Transaction  of  March  26. 

Elucidation. — The  bill  of  exchange,  which  we  have  bought  for  the  purpose 
of  making  a  remittance  to  London,  owes  us  for  its  face  only,  and  not  for  the  pre- 
mium we  have  paid  on  it. 

Exchange,  as  a  branch  of  our  business,  owes  us  for  what  it  has  cost  us — being, 
in  this  case,  the  difference  between  the  old  par  value  of  the  £,  and  the  amount 
the  £  in  Liverpool  sells  for  here. 

Note. — It  should  be  borne  in  mind,  that  the  premium  here  paid  is  only  an  apparant  pre- 
mium— a  premium  on  the  £1  at  $4.44.  If  bills  on  England  were  bought  or  sold  by  the  rate 
of  $4.84  as  the  par  value,  the  exchange  in  the  above  transaction  would  be  at  a  discount,  in- 
stead of  a  premium. 

When  we  buy  a  bill  of  exchange,  it  is  for  the  purpose  of  placing  funds  at  some 
distant  point,  without  the  necessity  of  remitting  specie  or  merchandise.  It  is  the 
method  of  remitting  generally  preferred,  provided  the  rate  of  exchange  be  not 
too  high. 

Day  Book — Transaction  of  March  21. 

Elucidation. — Wm.  Evans  owes  us  for  the  amount  of  the  order,  which  being 
at  sight,  and  accepted,  brings  him  immediately  into  our  debt.  It  is  agreed  that 
it  shall  be  passed  to  his  account,  instead  of  being  paid  in  cash,  because  by  former 
transactions  we  are  owing  him. 

Day  Book — Transaction  of  March  30. 

Elucidation. — Before  making  the  closing  entry  under  this  date,  all  the  entries 
in  the  Journal,  relating  to  the  Company  1  Merchandise,  must  be  posted,  and  the 
sums  on  the  credit  side  of  the  account  examined  in  the  Day  Book,  in  order  to  see 
if  they  are  actual  sales,  or  only  transfers.  This  done,  we  make  an  Account  Sales 
which  is  the  origin  of  the  Day  Book  entry  of  March  30th — and  which  gives  the 
following  result : — 

Total  sales  (amount  of  the  credit  side  of  the  account) $1,850  00 

Storage  charged  by  us,  (and  any  other  charges  against  the 

goods  if  we  had  them) $  39  00 

Our  commission  for  selling,  at  2J  per  cent 196  25 

Amount  of  the  expenses  on  the  flour 235  25 

which  we  subtract  from  the  total  sales,  and  which  gives  us  the 

amount  of  the  net  proceeds 1,614  15 

Half  of  which  belongs  to  Mr.  Harris 3,801  31 

And  our  half  is 3,801  38 

From  this  we  take  the  cost  of  our  half  (found  on  the  debtor  side  of  the 

account),  which  is 3,181  50 

Showing  our  net  gain  in  this  business  to  be 619  88 

From  the  preceding  we  draw  the  following  creditors  : — 

We  owe  to  Commission  for  producing  us $196  35 

We  owe  to  Store  Expenses  for  producing  us 39  00 

We  owe  to  P.  Harris  for  his  half  of  the  net  proceeds  of  the  flour  in 

our  hands 3,801  31 

We  owe  to  Profit  and  Loss  (name  of  our  business)  for  our  half  of  the 

net  gain 619  88 

Total  that  we  owe  (the  balance  of  the  account) 4,662  50 


TRIAL   BALANCE. 


41 


This  should  be  the  balance  of  the  account  of  Company  1  Merchandise,  because 
we  can  owe  no  more  or  less,  after  making  the  above  calculation,  than  we  did  be- 
fore :  but  we  may  owe  different  objects. 

Company  1  Merchandise  is  debtor,  because  it  owes  us  for  the  amount  we 
transfer  from  its  credit  to  the  credit  of  other  accounts,  where  it  more  properly 
belongs.  We  ought  to  make  this  transfer  of  the  balance,  because  the  goods 
have  all  been  sold,  and  the  preceding  calculation  shows  us  that  we  owe  that 
balance  to  other  parties  or  accounts. 

The  "  Account  Sales "  of  this  flour,  made  out  to  be  rendered  to  Mr.  Harris, 
will  be  found  anion";  the  Forms  at  the  end  of  the  book. 


TRIAL  BALANCE. 


The  student  will  now,  having  posted  all  the  entries  in  the  Journal,  proceed  to 
make  out  the  Trial  Balance  of  March  30,  in  the  manner  explained  at  the  end  of 
January  and  February. 

The  following  is  the  Trial  Balance,  showing  the  balances  of  the  accounts  at 
this  date  : — 


Dr. 


Balances  of  March  30,  1858. 


Cr. 


■2 
4 
5 
6 
1 
8 
9 

10 
12 
13 
14 
16 

Cash, 

$28,787 

4,596 

11,392 

300 

4,951 

18 

177 

165 

395 

307 

2,020 

4,109 

33 
39 
79 
00 
00 
76 
78 
00 
00 
62 
00 

56 

1 
1 

6 

7 

8 

9 

11 

14 

16 

T.  Blanchard, 

C.  C.  Marsh, 
Bills  Payable, 

Discount  &  Int'st. . 
Profit  and  Loss, . . 
Commission, 

J.  De  Nones, 

Shipment  to  New) 

$26,920 

16,405 

4,293 

112 

269 

496 

4,994 

3,531 

197 

00 
00 
78 
50 
88 
10 
87 
32 

78 

Merchandise, 

Bills  Receivable . . 
Store  Fixtures, . . . 
Schooner  Josephine 
Store  Expenses . . . 

C.  Lawrence,  .... 
S.  H.  Lovell,  .... 

W.  Howard, 

Lockhart  &  Arrott 

Shipment  to  Port ) 

au  Prince, J 

57,221 

23 

57,221 

23 

42  JOURNALIZING 


BUSINESS    OF   APRIL. 

Embracing  Entries  of  forty  Transactions,  relating  to — Paying  Rent — Receiving  Returns 
— Receiving  Consignments  free  of  Charges— Selling  on  Commission — Renewing  notes — 
Allowing  to  ourselves  for  Damages— Shipping  on  our  Account— Closing  Consignment — 
Buying  in  Joint  Account— Exchanging  Uncurrent  Money — Renewing  our  Notes  —Trans- 
ferring Purchase  at  Auction — Drawing  Prize — Receiving  Account  Sales  with  Returns — 
Taking  a  Consignment  to  our  Account — Receiving  Freights  of  our  Vessel — Drafts  remitted 
us  for  Collection — Buying  Drafts  per  Order  and  for  Remittance — Investing  Funds  in 
Drafts— Buying  Specie— Allowing  Interest  on  Partner's  Capital— Rendering  Accounts  Cur- 
rent—Closing Accounts— Correcting  Errors,  &c,  &c. 

THE   RULE. 

Question  yourself,  in  every  transaction,  thus  : — 

What  owes  us  ?    For  that  alone  is Dr. 

What  do  we  owe  ?    For  that  alone  is Cr. 

Day  Book — Transaction  of  April  2. 

Elucidation. — The  cotton  that  we  receive,  in  this  transaction,  owes  us  as  much 
for  the  freight  as  for  its  first  cost  in  New  Orleans.  It  is  therefore  debtor  for 
$2,320. 

To  Lockhart  &  Arrott  we  are  indebted  for  the  amount  of  the  cotton  shipped 
to  us  by  our  request.  This  invoice  is  returns  for  a  shipment  made  to  Lockhart 
&  Arrott,  February  4th  ;  but  we  do  not  owe  and  credit  the  shipment  in  this 
transaction,  because  it  was  credited  when  we  received  the  account  sales,  March  16. 

Day  Book — Transaction  of  April  3. 

Elucidation. — In  this  transaction  there  is  neither  debtor  nor  creditor  ;  that 
is,  nothing  owes  us,  and  we  owe  nothing.  We  can  not,  therefore,  make  any 
Journal  entry.  The  coffee  still  belongs  to  Mr.  Fisher.  We  have  not  bought  it 
of  him,  nor  agreed  to  pay  him  a  certain  sum  ;  therefore  we  can  not  owe  him  for 
the  coffee,  nor  credit  him  for  it.  The  coffee  has  not  cost  us  anything,  nor  is  it 
responsible  to  us  for  any  expenses  ;  therefore  it  is  not  debtor. 

There  is  no  necessity  for  this  transaction  appearing  in  the  Day  Book  ;  but  the 
invoice  should  be  copied  into  the  Invoice  Book,  and  Mr.  Fisher  is  entitled  to  a 
receipt  for  the  quantity  of  coffee  received  of  him  on  commission. 

Day  Book — Transaction  of  April  T. 

Elucidation. — We  say  nothing  of  Bills  Receivable  in  the  transaction  of  this 
date,  because  the  circumstances  of  the  note  have  not  changed.  It  still  owes  us 
the  $2,000,  for  which  we  made  it  debtor  when  it  began  to  owe  us — January  5th. 

The  new  note  should  be  entered  in  the  Bill  Book,  and  against  the  old  one 
should  be  remarked,  that  it  was  renewed.  (See  Notes  Nos.  1  and  15,  in  the 
Bill  Book.)  It  is  customary,  in  renewing  notes,  to  draw  the  new  note  for  the 
same  amount  as  the  old  one,  and  to  pay  the  interest  on  the  new  note  in  advance, 
for  the  time  it  may  have  to  run. 


JOURNALIZING.  43 

Day  Book — 2d  Transaction  of  April  7. 

Elucidation. — Mr.  Fisher  owes  us  for  the  sum  we  have  paid  him  on  account 
of  the  proceeds  of  his  coffee.  We  shall  owe  him  the  net  proceeds  when  we  ren- 
der the  account  sales. 

To  Fisher's  consignment  we  are  indebted  for  producing  us  the  $1,440  paid  to 
Mr.  Fisher. 

If  we  had  made  two  entries  of  this  transaction  in  the  Day  Book,  Cash  would 
appear  as  both  a  debtor  and  a  creditor. 

Day  Book — Transaction  of  April  10. 

Elucidation. — Mr.  De  Nones  owes  us  for  the  amount  of  the  defects  found, 
and  allowed,  in  goods  sold  for  him.  We  say  nothing  of  the  consignment  in  the 
Journal  entry,  because  that  has  been  closed,  and  the  net  proceeds  transferred  to 
his  account. 

Merchandise  is  creditor,  because  by  that  name  we  called  the  olives  when  they 
became  ours,  and  now  they  have  produced  us  the  amount  we  claim  as  deduction 
in  the  price  we  took  them  at. 

Day  Book — Transaction  of  April  11. 

Elucidation. — Mr.  Fisher  owes  us  for  the  amount  we  have  paid  him — that  is, 
$1,350  :  $1,322.33,  four  months  before  due,  is  equal  to  $1,350,  allowing  us  in- 
terest for  four  months  and  three  days. 

Bills  Receivable,  or  the  note  of  S.  H.  Lovell,  owes  us  now  for  the  sum  that  he 
owed  us  before,  because  in  that  kind  of  property  he  has  paid  us.  Discount  is  in 
our  favor  :  it  produces  us  $2161.    We  discounted  the  note  for  Mr.  Fisher. 

Day  Book — Transaction  of  April  16. 

Elucidation. — Before  we  can  make  the  Day  Book  entry  of  this  date,  all  the 
sums  for  which  the  "consignment"  is  debtor  or  creditor  in  the  Journal,  must  be 
posted  to  the  account  in  the  Leger. 

On  the  credit  side  we  see  the  amount  of  the  sales — $4,680  ;  from  which  sub- 
tracting all  the  expenses,  leaves  the  net  proceeds  $4,545.  By  this  calculation, 
we  discover  that  the  balance  of  the  account  (which  is  the  total  of  the  credit  side 
in  this  case)  is  $4,680,  and  that  we  owe  this  sum  to  the  following,  to  which  we 
must  now  transfer  it : — 

We  owe  to  Commission  for  what  it  produces  us $111  00 

We  owe  to  Store  Expenses  for  what  they  produce  us 18  00 

We  owe  to  J.  Fisher  for  the  net  proceeds  of  his  coffee 4,545  00 

Making  the  total  of  the  Cr.  side,  or  the  balance  of  the  account . . . .  4,680  00 

These  now  become  our  creditors  instead  of  the  consignment,  and  this  must  be 
charged  for  the  amount  that  we  transfer,  which  will  close  the  account  of  the 
consignment.    Rule  and  foot  the  consignment  account. 

Day  Book — Transaction  of  April  20. 

Elucidation. — The  merchandise  bought  in  joint  account  with  Mr.  Austin,  in 
this  transaction,  owes  us  for  the  amount  it  has  cost  us — that  is,  for  what  our  two 
thirds  cost,  $3,333.33 — and  for  no  more.  The  merchandise  can  not  owe  us  for 
what  it  has  cost  Mr.  Austin. 


44  JOURNALIZING. 

We  say  nothing  of  Mr.  Austin  in  the  Journal  entry,  because  we  have  paid 
nothing  for  him,  nor  he  for  us  ;  we  do  not  owe  him  for  paying  for  his  |  for  himself. 

Note. — Never  permit  the  mere  circumstance  of  receiving  or  delivering  to  divert  your  atten- 
tion from  the  true  and  only  practical  Rule.  By  this  rule  alone  can  you  prove  the  correctness 
of  a  Journal  entry.  There  are  various  other  transactions,  besides  this,  in  which  the  object 
that  is  received  is  not  our  debtor,  and  that  which  is  delivered  is  not  our  creditor.  See  the  trans- 
actions of  the  4th,  12th,  25th,  26th,  and  27th  of  February,  2d,  3d,  16th,  20th,  21st,  and  27th 
of  March,  and  3d  of  April.  In  all  these  cases,  if  the  old  rule  ("  The  thing  received  is  Dr.  tc 
the  thing  delivered")  should  be  applied,  the  Journal  entry  would  be  grossly  wrong.  Also, 
the  old  rule  never  can  be  applied  to  interest,  without  making  a  wrong  entry. 

Day  Book — Transaction  of  April  24. 

Elucidation. — To  renew  a  note,  is  to  pay  it  by  giving  a  new  note  for  the  old 
one  ;  and  as  the  new  is  generally  drawn  for  the  same  amount  as  the  old,  it  is 
customary  to  pay  the  interest  that  may  arise  on  the  new  note,  in  advance. 

Day  Book — Transaction  of  April  28. 

Elucidaton. — As  we  receive  the  account  sales  of  our  shipment  to  Messrs. 
Walker  &  Co.  at  the  same  time  we  receive  the  returns,  we  owe  the  "  Shipment 
to  Port  au  Prince  "  for  the  net  proceeds,  and  not  Walker,  because  the  shipment 
now  produces  us  $6,000. 

If  these  returns  had  not  been  accompanied  by  the  account  sales,  then  we  should 
owe  and  credit  Messrs.  Walker  &  Co.  for  the  invoice  of  hides. 

The  freight  composes  a  part  of  the  cost  of  the  hides ;  therefore  they  are  debtor 
for  the  $200  as  well  as  the  $6,000. 

We  owe  our  schooner  for  the  value  she  produces  us  in  freight. 

Day  Book — 2d  Transaction  of  April  28. 

Elucidation. — The  expenses  on  the  mahogany  were  incurred  while  it  belong- 
ed to  Messrs.  Walker  &  Co.  ;  therefore  we  deduct  them  from  the  amount  at 
which  we  buy  the  mahogany  ($3,000),  leaving  the  net  proceeds  of  $2,650,  which 
we  owe  to  the  consignors. 

The  mahogany  owes  us  for  its  cost,  which  is  $3,000. 

Day  Book — 3d  Transaction  of  April  30. 

Elucidation. — The  bill  of  exchange  that  we  have  bought,  in  this  transaction, 
does  not  owe  us,  because  we  have  bought  it  by  request  of,  and  remitted  to, 
Messrs.  Walker  &  Co.  :  they  owe  us. 

We  owed  Messrs.  Walker  &  Co.  $2,650,  which  we  will  suppose  was  due  them 
here  (in  New  York  City)  ;  and  we  have,  by  their  order,  invested  that  sum  (less 
our  commission)  in  a  draft  drawn  for  as  much  as  the  funds  would  buy. 

Day  Book — 4th  Transaction  of  April  30. 

Elucidation. — In  this  transaction,  we  buy  a  bill  of  exchange,  and  remit  it 
to  Mr.  De  Nones,  in  payment  of  what  we  owed  him — $3,469.32.  Let  us  suppose 
that  this  debt  was  payable  to  him  in  Cadiz  :  we  then  have  only  to  buy  a  draft 
for  which  he  will  receive  that  sum.  If  we  give  for  the  draft  less  than  that  sum, 
the  gain  by  exchange  or  discount  is  ours,  not  his ;  if,  on  the  contrary,  the  ex- 
change on  Cadiz  is  at  a  premium,  the  loss  would  be  ours,  not  his.     (It  is  neces- 


JOURNALIZING.  45 

sary  to  know  when  the  money  is  due  or  payable,  in  order  to  know  who  gains  or 
loses  by  the  exchange.)     The  draft  we  have  bought  has  cost  only  $3,402.98  : 
but  Mr.  De  Nones  will  receive  for  it  $3,454.80,  which  sum,  with  the  interest  for 
25  days  that  it  wants  of  being  due,  will  make  the  sum  that  we  owed  him- 
$3,469.32. 
In  Journalizing  this  transaction — 

We  owe  to  Exchange,  because  it  is  in  our  favor,  and  produces  us  the 

discount  on  the  draft $      51  82 

We  owe  to  Interest,  because  it  brings  us. . 14  52 

We  owe  to  Cash  for  paying  for  the  draft 3,402  98 

Making  the  sum  which  Mr.  De  Nones  owes  us,  and  is  debtor 

for,  in  this  transaction 3,469  32 

a30 
Note.— Had  this  debt  been  due  to  Mr.  De  Nones  in  this  city,  instead  of  Cadiz,  we  could 
charge  him  only  for  the  cost  of  the  draft,  and  not  for  what  it  was  drawn  ;  and  then  we  should 
have  nothing  to  say  in  the  Journal,  of  exchange,  because  it  would  neither  produce  us  nor 
cost  us  anything. 

Day  Book — 5th  Transaction  of  April  30. 

Elucidation. — In  this  transaction  we  buy,  with  funds  in  our  hands  belonging 
to  Mr.  Ruiz,  a  bill  of  exchange  on  Havana  ;  and  we  pay  for  it  according  to  the 
rate  of  exchange,  which  we  may  suppose  to  be  \\  per  cent,  discount.  In  this 
way,  we  receive  a  draft  for  $5,050.63,  for  which  we  give  only  $4,974.88,  which, 
with  our  commission,  makes  up  the  amount  of  funds  we  held  for  Mr.  Ruiz — 
$4,981.50. 

Mr.  Ruiz  owes  us,  in  this  case,  for  the  amount  we  paid  for  the  draft,  and  for 
our  commission,  but  for  no  more. 

Exchange  costs  us  nothing,  nor  do  we  gain  by  it  ;  it  being  in  favor  of  Mr. 
Ruiz,  who  will  receive  a  draft  for  a  larger  sum  than  he  would  have  received,  had 
the  exchange  been  at  par. 

Day  Book — 6th  Transaction  of  April  30. 

Elucidation. — In  this  transaction,  we  only  exchange  one  kind  of  money  for 
another  ;  and  as  we  pay  a  premium  on  that  we  receive,  we  say  Exchange  owes  us 
for  what  it  has  cost,  and  we  owe  to  Cash  for  paying  it  for  us. 

Day  Book — 1th  Transaction  of  April  30. 

Elucidation. — This  entry  is  made  for  the  purpose  of  crediting  each  partner 
for  interest  on  his  capital — under  the  supposition  that  it  was  so  stipulated  in  the 
articles  of  agreement  between  them.  To  arrive  at  the  interest  that  may  be  due 
a  partner  on  his  capital,  we  make  out  his  "  account  current,"  as  we  would  make 
one  for  Mr.  Harris,  calculating  interest  on  both  sides  of  the  account,  from  the 
date  that  each  sum  may  be  due.  See  the  "  Account  Current"  made  out  for  Mr. 
Marsh,  among  the  Forms  at  the  end  of  the  book.  The  balances  of  interest  in 
this  entry  are  obtained  from  the  accounts  current. 

In  Journalizing  this  entry  we  say  that  we  (the  firm)  owe  to  the  individuals  of 
the  firm,  and  that  interest  owes  us. 

Day  Book — 8th  and  9th  Transaction  of  April  30. 
Elucidation. — The  sums  of   these  entries  are  obtained   from  the  accounts 


46 


TRIAL   BALANCE 


current,  made  out  for  Mr.  Harris  and  Mr.  Lawrence,  which  will  be  found  among 
the  Forms  at  the  end  of  the  book.  The  entry  relating  to  Mr.  Harris  is  journali- 
zed wrong  ;  but  the  error  is  corrected  by  the  last  entry  in  the  day  book,  undei 
date  of  May  30.  This  furnishes  an  example  for  the  correction  of  errors  by  day 
book  entries,  which  should  be  resorted  to  only  when  the  account  containing  the 
error  has  been  closed  ;  in  other  cases  it  is  better  to  change  the  figures  to  ciphers, 
let  the  words  remain,  and  make  a  new  entry. 


TRIAL    BALANCE. 


Dr. 


Balances  of  April  30,  1858. 


Cr. 


3 
4 
5 
6 
1 
1 
8 

10 
12 
13 
16 
18 

Cash, 

$26,214 
11,431 

6,998 
300 
612 

4,126 
662 
161 
395 
301 

3,500 

3,333 

01 
14 
35 
00 
53 
00 
16 
31 
00 
62 
00 

33 

1 
1 
6 
8 
9 
9 
10 
16 

16 

T.  Blanchard, .... 
C.  C.  Marsh, 
Bills  Payable, .... 
Profit  and  Loss, . . 

Shipment  to  New ) 
Orleans, j 

Shipment  to  Port ) 
au  Prince, . . . .  j 

$26,810 

16,102 

4,131 

2,319 

182 

164 

4,988 

191 

1,890 

46 
69 
11 

88 
19 
16 
20 

18 
44 

Merchandise,  .... 
Bills  Receivable . . 
Store  Fixtures, . . . 
Discount  &  Int'st. . 
Schooner  Josephine 
Store  Expenses . . . 
C.  Lawrence,  .... 
S.  H.  Lovell,  .... 
W.  Howard,  .... 
Shipment  to  Boston 
Company  2  Mer- ) 
chandise, . . . .  j 

// 

58,114 

11 

58,114 

11 

BALANCE    SHEET.  47 


BALANCE    SHEET 


It  is  customary,  in  well-regulated  mercantile  houses,  to  close  all  the  accounts, 
or  balance  the  books,  once  a  year.  The  object  of  so  doing  is  to  obtain  a  correct 
view  of  the  true  state  and  result  of  the  business  of  which  the  books  give  the  re- 
cords. Accounts,  however,  are  closed  or  balanced  under  other  circumstances — 
upon  a  cessation  of  business,  dissolution  of  partnership,  and  when  the  books  are 
full  and  there  is  occasion  for  new  ones. 

The  first  object  to  which  we  direct  our  attention,  in  closing  the  books,  is  the 
Balance  Sheet.  This  sheet  exhibits,  under  two  heads,  the  entire  result  of  our 
mercantile  operations.  Under  the  heading  of  "  Balances  of  our  Property  and 
Debts,  or,  Assets  and  Liabilities,'"  are  brought  together  all  that  owe  us,  and 
that  we  possess,  and  all  that  we  owe  or  are  liable  for  ;  under  the  heading  of 
"  Balances  of  our  Profits  and  Losses,"  are  shown  all  the  balances  of  gain  or  loss 
that  may  be  found  in  the  Leger  ;  and  consequently  the  balance  of  one  will  be  the 
net  capital,  of  the  other,  the  net  gain. 

The  Balance  Sheet  is  chiefly  composed  from  the  Leger,  and  an  inventory  of  the 
merchandise  on  hand  belonging  to  us,  which  should  be  taken  at  the  cost  price,  or 
less,  if  the  goods  are  depreciated  in  value,  but  never  at  more  than  cost. 

Take  a  sheet  of  paper,  and  make  on  it  the  following  headings,  similar  to  the 
succeeding  Balance  Sheet : — 

"  Balances  of  our  Assets  and  Liabilities,"  and 
"  Balances  of  our  Profits  and  Losses." 

Explanation  op  the  Items  on  the  Balance  Sheet. 

In  disposing  of  the  balances  presented  in  the  Leger,  on  the  Balance  Sheet,  we 
have  merely  to  pass  on  the  character  of  each  debtor  and  creditor  ;  thus,  those  that 
owe  us  and  will  pay,  are  our  assets,  and  are  so  entered  on  the  Balance  Sheet  : 
those  which  owe  us  and  will  not  pay,  are  our  losses,  and  are  to  be  so  entered  on 
the  Sheet ;  those  which  we  owe  and  must  pay,  are  our  Liabilities,  to  be  entered 
on  the  Sheet  as  such  ;  while  those  balances  which  we  owe  and  need  not  pay,  are 
our  gains. 

Turn  to  the  first  account  in  the  Leger,  and,  by  reflecting  on  its  nature,  en- 
deavor to  determine  on  what  part  of  the  Sheet  its  balance  should  be  placed. 

The  first  two  accounts  that  we  find  are  those  of  the  partners,  from  which  we 
take  nothing  at  present,  because  their  balances  are  what  remains  of  the  old  or 
original  capital. 

The  Cash  account  (folio  3)  shows  on  its  debtor  side  all  the  money  we  have  re- 
ceived, and  on  its  credit,  all  we  have  paid.  It  is  therefore  clear,  that  the  balance 
or  difference  between  the  debit  and  credit,  is  the  money  on  hand.  Cash  is  a 
property  that  owes  us  $26,214.07,  which  sum  we  will  enter  on  the  debtor  side  of 
the  Balance  Sheet,  under  the  head  of  Assets  and  Liabilities. 

This  account  of  Merchandise  (folio  4)  shows  on  its  debtor  side  the  cost  of  all 
the  goods  we  have  bought,  and  on  its  credit,  the  product  of  all  the  sales. 

The  cost  of  our  merchandise  on  hand,  according  to  the  inventory  (which  we 


48  BALANCE    SHEET. 

now  suppose),  is  $15,000.     This  property,  merchandise,  owes  us  that  sum,  and 
we  enter  it  on  the  debtor  side,  under  the  head  of  Assets  and  Liabilities. 

We  must  now  calculate  the  gain  or  loss  on  the  sales,  which  is  done  by  adding 
the  amount  of  the  merchandise  on  hand  to  the  amount  of  the  sales,  thus  : — 

Amount  of  sales,  (total  of  the  creditor  side) $24,619  47 

Amount  of  merchandise  on  hand,  per  inventory 15,000  00 

39,619  47 

Cost  of  all  the  merchandise,  (total  of  the  debtor  side) 36,056  61 

By  subtracting,  we  find  the  gain  on  the  sales 3,562  86 

This  gain  we  enter  on  the  creditor  side  of  the  part  of  the  Sheet  headed  "  Profits 
and  Losses." 

Note. — There  is  another  way  of  finding  the  gain  on  the  sales,  when  the  account  is  in  a 
similar  state,  which  is,  by  subtracting  the  balance  of  the  account  from  the  amount  of  the  in- 
ventory, thus : — 

Amount  of  Inventory $15,000  00 

Balance  of  the  account 11,437  14 

Gain  on  the  sales 3,562  86 

If  there  had  been  no  merchandise  on  hand,  the  balance  of  the  account  would 
then  be  either  gain  or  loss. 

The  account  of  Bills  Receivable  (folio  5)  shows  that  we  have  in  our  possession 
notes  to  the  amount  of  $6,998.35.  This  property  owes  us,  then,  this  sum  ;  and 
therefore  we  enter  it  on  the  debtor  side,  under  the  head  of  Assets  and  Liabilities. 

The  account  of  Bills  Payable  (folio  6")  shows  that  there  are  notes  and  accept- 
ances out  against  us,  to  the  amount  of  $4,137.11  ;  and  as  that  is  a  sum  we  owe, 
we  enter  it  on  the  creditor  side,  under  the  head  of  Assets  and  Liabilities.  This 
balance,  as  well  as  the  preceding,  ought  to  correspond  with  the  notes  out,  and 
on  hand,  in  the  Bill  Book. 

The  account  of  Store  Fixtures  (folio  6)  shows  that  this  property  has  cost  us 
$300  ;  from  which  sum  we  deduct  10  per  cent,  for  the  wear,  and  place  the 
balance  ($270)  on  the  debtor  side,  under  the  head  of  Assets  and  Liabilities  : 
and  the  $30  loss  we  enter  under  the  head  of  Profits  and  Losses,  on  the  debtor 
side. 

The  account  of  Discount  and  Interest  (folio  1)  shows  a  gain  or  a  loss.  If  the 
creditor  side  exceeds  the  debtor,  it  is  evident  that  this  branch  of  our  business  has 
produced  us  more  than  it  has  cost,  the  balance  therefore  would  be  a  gain.  But 
the  balance,  in  the  present  instance,  is  on  the  debit,  it  is  a  debt  owed  to  us  ;  but 
as  we  never  can  collect  the  sum,  it  is  a  loss,  and  consequently  we  enter  said 
balance  under  the  head  of    Profits  and  Losses,   on  the  debtor  side. 

The  account  of  Schooner  Josephine  (folio  7)  shows  both  property  and  profit 
or  loss.  Her  first  cost  is  $5,000,  which  we  will  take  as  the  amount  of  property, 
and  enter  it  on  the  debtor  side,  under  the  head  of  Assets  and  Liabilities.  The 
creditor  side  of  this  account  shows  what  the  schooner  has  produced  us  for  freight 
— $1,055  ;  from  which  we  deduct  the  expenses  on  the  debit  ($181),  and  the  re- 
sult is  the  gain,  which  we  enter  on  the  credit,  under  the  head  of  Profits  and 
Losses." 

(Explanation  of  the  items  on  t/ie  following  Balance  Sheet,  continued  on  page  52.) 


BALANCE     SHEET 


OF 


APRIL    30,    1858. 


BLANCHARD    &   MARSH 


DR. 


BALANCES    OF    OUR 


3 

4 

5 

0 

7 

10 

10 

13 

16 

18 

j 

Merchandise,                     balance  on  hand  per  Inventory, 
Store  Fixtures,                 valued  at, 

$26,274 
15,000 

6,998 
270 

5,000 
167 
395 
307 

3,500 

3,333 

07 
00 
35 
00 
00 
31 
00 
62 
00 
33 

68 

Schooner  Josephine,          first  cost, 

Charles  Lawrence,            balance  in  our  favor, 

Shipment  to  Boston,        no%^.ccount  Sales, 

Company  2  Merchandise,  cost  of  our  two  thirds  on  hand,-. 

61,245 

V  -  . 

• 

DR. 


BALANCES    OF    OUR 


6 

7 
8 

Store  Fixtures,                loss  10  per  cent,  on  the  cost, . . 

Thomas  Blanchard's        half  net  gain, $  4,273  61 

C.  C.  Marsh's                  half  net  gain, 4,273  61 

$       30 
612 
662 

8,547 

00 
53 
76 

22 

Net  Gain, 

9,852 

51 

PROOF    OF    THE    BALANCE    SHEET. 

$  26,870  46    Bal.  of  Thos.  Flanchard'a  acet. 
16,702  69      "      "  C.C.  Marsh's  acct. 
43,573  15    Net  old  Capital  in  the  Business. 
To  which  add      8,547  22    Net  gain  as  above  shown- 

$  52,120  37    Amount  of  present  Net  Capital. 

50 


ASSETS    AND 

LIABILITIES. 

CB 

6 
10 

Bills  Payable, 
Paul  Harris, 

Thomas  Blanchard's 
C.  C.  Marsh's 

• 

balance  outstanding, 

balance  in  his  favor, 

%   4,137 
4,988 

52,120 

11 
20 

31 

share  of  capital, ...  $31,144  0*1 
share  of  capital, .. .  20,916  30 

Net  Capital 

^^^0 

61,245 

68 

.V 

PROFITS   AND    LOSSES. 


CE, 


4 

7 
8 
9 
9 
16 
16 


Merchandise, 

Schooner  Josephine, 

Profit  and  Loss, 

Commission, 

Exchange, 

Shipment  to  N.  Orleans,  gain, 

Shipm't  to  Port  au  Prince,  gain, 


gain  on  sales, , 

gain, 

gain, 

gain, 

gain, 


/     New  York,  April  30,  1858. 


per  John  Sims, 
Book-keeper. 


%  3,562 

86 

874 

•oo 

2,379 

88 

782 

79 

164 

76 

197 

78 

1,890 

44 

9,852 

51 

52  BALANCE    SHEET. 

The  account  of  Profit  and  Loss  (folio  8)  represents  our  business ;  if  the  debtoi 
side  exceeds  the  credit,  the  balance  will  be  loss  ;  or,  if  the  credit  exceeds  the 
debit,  the  balance  will  be  gain.  The  balance,  in  this  case  is  gain,  which  we  enter 
under  the  head  of  "  Profits  and  Losses,"  on  the  credit  side. 

Store  Expenses  (folio  8).  This  account  does  not  show  property,  but  a  branch 
of  our  business  ;  and  the  balance  which  appears  at  it  is  either  gain  or  loss. 
Store  Expenses  owes  us,  but  they  will  never  pay  what  they  owe  ;  therefore  the 
balance  of  this  account  should  be  entered  under  the  head  of  "  Profits  and  Losses." 

The  account  of  Exchange  (folio  9)  shows  a  sum  of  gain,  because  its  credit  side 
exceeds  the  debit — that  is,  this  branch  of  our  business  has  produced  us  more  than 
it  has  cost ;  therefore  we  enter  the  balance,  $164.16,  on  the  credit  side,  under 
the  head  of  "Profits  and  Losses." 

The  account  of  Commission  (folio  9)  represents  a  branch  of  our  business  ; 
consequently  we  enter  its  balance,  $782.79,  under  the  head  of  Profits  and  Losses. 

The  account  of  Charles  Lawrence  (folio  10)  shows  a  balance  against  him,  and 
in  our  favor,  of  $167.31  ;  and  as  we  consider  him  solvent,  we  place  it  on  the 
debtor  side  of  the  sheet,  under  the  head  of  Assets  and  Liabilities. 

The  account  of  Paul  Harris  (folio  10)  shows  a  balance  in  his  favor,  which, 
being  a  sum  that  we  owe,  we  enter  on  the  credit  side,  under  the  head  of  "  Assets 
and  Liabilities." 

The  account  of  O.  Otis  &  Co.  (folio  10)  shows  no  balance,  it  having  been 
balanced  or  closed  in  the  course  of  the  business. 

The  account  of  S.  H.  Lovell  (folio  12)  shows  a  balance  in  our  favor,  and  as 
such  we  enter  it  under  the  head  of  Assets  and  Liabilities,  on  the  debit. 

The  account  of  Walter  Howard  (folio  13)  exhibits  a  balance  in  our  favor  of 
§307.62  ;  and,  as  we  esteem  him  "  good,"  we  enter  it  on  the  debit  side,  under 
the  head  of  Assets  and  Liabilities. 

The  account  of  Shipment  to  Boston  (folio  16),  not  having  any  sum  on  its 
credit,  shows  that  we  have  not  received  an  account  sales  ;  therefore  the  amount 
of  its  debtor  side  is  property  which  we  have  in  Boston.  We  enter  this  amount 
on  the  debit,  under  the  head  of  Assets  and  Liabilities. 

The  account  of  Company  2  Merchandise  (folio  18)  shows  a  balance  due  us  of 
$3,333.33  ;  which  is  the  cost  of  our  two  thirds  of  the  merchandise  belonging 
jointly  to  Mr.  Austin  and  ourselves.  We  therefore  enter  our  part  on  the  debit, 
under  the  head  of  Assets  and  Liabilities. 

The  account  of  Shipment  to  New  Orleans  (folio  16)  does  not  now  show  any 
sum  of  property,  it  having  been  sold,  and  the  account  sales  received.  On  the 
credit  side  we  see  what  the  shipment  has  produced  us,  and  on  the  debit,  what  it 
has  cost.  The  balance,  in  this  case,  is  gain,  which  we  enter  under  the  head  of 
"  Profits  and  Losses." 

The  account  of  Shipment  to  Port  au  Prince  is  in  the  same  state  as  the  preceding. 

Having  now  been  through  the  Leger,  and  taken  from  every  account  what  it 
contained  of  property  and  debts,  and  of  profits  and  losses,  and  disposed  of  the 
sums  under  their  appropriate  heads  on  the  Balance  Sheet,  we  add,  with  pencil, 
its  columns,  and  ascertain  the  balances. 

The  Balance  Sheet  exhibits  two  important  results  :  Under  the  head  of  Assets 
and  Liabilities,  are  seen  all  we  possess,  and  all  that  we  owe  ;  the  difference,  or 
balance,  must  be  our  present  net  capital — $52,120.37.  All  the  sums  of  gain  and 
those  of  loss,  throughout  the  Leger,  have  been  brought  on  to  the  Balance  Sheet, 
under  the  head  of  "  Profits  and  Losses ;"  and  the  balance  of  the  two  columns  of 


BALANCE    SHEET.  53 

this  part  of  the  sheet  must  be  the  net  gain  of  our  business— $8,547.22.  The 
Sheet  can  not  be  closed,  or  finished,  until  it  has  been  proved. 

PROVING  THE  BALANCE  SHEET. 

If  the  Balance  Sheet  be  correct,  it  may  be  proved  by  adding  the  net  gain  to 
the  original  capital,  which  should  make  the  net  present  capital  ;  thus  : — 

Thos.  Blanchard's  old  capital  (balance  of  his  account) $26,870  46 

C.  C.  Marsh's  old  capital  (balance  of  his  account) 16,702  69 

Net  old  capital  in  the  business 43,573  15 

Net  gain  by  the  Balance  Sheet 8,547  22 

Net  present  capital 52,120  37 

Which,  being  the  same  amount  produced  by  subtracting  all  we  owe  from  all  we 
have  (property  and  debts),  is  proof  that  the  Balance  Sheet  is  correct.  The 
proof,  then,  consists  in  finding  the  present  capital  by  two  different  methods  ;  one, 
by  subtracting  our  liabilities  from  our  assets  ;  the  other,  by  adding  our  gain  to 
our  former  capital.     These  operations  should,  of  course,  result  in  the  same  sum 

CLOSING  THE  BALANCE  SHEET. 

The  net  gain  is  divided  equally  between  the  partners,  and  the  last  two  entries 
are  made  on  the  debtor  side  of  that  part  of  the  sheet  headed  "  Profits  and 
Losses  ;"  which  operation  will  close  or  balance  that  part  of  the  Sheet. 

Each  partner's  share  of  the  net  capital  will  be  found  by  adding  his  half  of  the 
net  gain  to  his  old  capital  [balance  of  his  account.]  The  last  two  entries  on  the 
credit  of  that  part  headed  Assets  and  Liabilities,  show  each  partner's  share  of 
the  net  capital,  and  close  that  part  of  the  Sheet. 

Place  the  totals  at  the  foot  of  the  columns,  affix  the  date,  and  the  Balance 
Sheet  is  finished. 

If  for  any  reason  it  is  not  desired  to  close  the  books,  all  information  relative  to 
the  state  of  our  business  may  be  derived  from  the  Balance  Sheet. 

CLOSING  THE  BOOKS. 

To  close  an  account,  means  to  make  the  debtor  and  creditor  sides  equal,  while 
closing  the  books  consists  in  conveying  the  balances  of  gains  and  losses  which 
may  be  found  at  different  accounts  in  the  Leger,  into  the  accounts  of  the  part- 
ners, or  owners. 

Six  entries  in  the  Day  Book,  composed  from  the  contents  of  the  Balance  Sheet, 
journalized  and  posted,  will  always  close  a  set  of  books. 

There  are  two  motives  for  making  these  closing  entries  :  the  first  is,  to  carry 
the  net  gain  of  the  business  to  the  partners'  accounts  ;  the  other  is,  that  each 
account  in  the  Leger  may  begin  anew,  by  its  balance  being  separated  from  the 
other  sums,  and  brought  down  below  the  totals,  or  lines. 

Day  Book,  April  30 — Last  six  Entries. 

The  last  six  entries  in  the  Day  Book,  under  date  of  April  30,  are  composed 
from  the  Balance  Sheet. 

The  object  of  theirs*  is,  to  transfer  the  losses  from  the  several  accounts  where 
they  are  now,  to  one  account,  viz.,  Profit  and  Loss  ;  therefore  we  make  this 


54  BALANCE    SHEET. 

debtor  in  place  of  the  others,  and  the  others  become  creditors  ;  which  entry, 
when  posted,  will  close  those  several. 

The  object  of  the  second  entry  is  to  transfer  the  gains,  in  like  manner,  from  the 
several  accounts  to  one  account — which  is  Profit  and  Loss  ;  therefore  this  becomes 
our  creditor,  and  those  our  debtors. 

The  object  of  the  third  entry  is  to  transfer  the  net  gain,  which  now  stands  at 
the  Profit  and  Loss  account,  to  the  accounts  of  the  partners  :  these,  therefore, 
become  the  creditors,  and  that  the  debtor  ;  which  entry,  when  posted,  will  close 
the  Profit  and  Loss  account. 

The  object  of  the  fourth  entry  is  to  transfer  all  the  balances  of  Property  and 
Debts,  in  our  favor,  to  a  new  account  opened  in  the  Leger,  entitled  "  Balances 
of  April  30,  1858."  Consequently,  this  new  account  becomes  debtor  for  all  the 
sums  that  the  former  owed  us,  and  they  become  creditors  ;  which .  entry,  when 
posted,  will  balance  or  close  those  accounts.     Post  the  creditors  in  red  ink. 

The  object  of  the  fifth  entry  is  to  transfer  the  balances  of  all  those  that  we 
owe,  to  the  account  of  "  Balances  of  April  30,  1858  ;"  this,  then,  becomes  the 
creditor,  and  those  the  debtors  ;  which  will,  when  posted,  close  the  accounts  of 
Bills  Payable  and  P.  Harris.     Post  these  two  in  red  ink. 

The  sixth  entry  closes  or  balances  the  three  only  remaining  unclosed  accounts. 
The  balance  of  the  account  entitled  "  Balances  of  April  30,  1858,"  is  now  the 
net  present  capital — $52,120.31  ;  and  the  balances  of  the  accounts  of  the  part- 
ners are  their  respective  shares  of  said  capital.  To  close  these  three  accounts, 
the  partners  become  debtors,  and  the  "  Balances "  creditor.  Post  all  these  in 
red  ink.  The  reason  of  posting  the  balances  in  red  is,  that  such  sums  are  here- 
after to  be  brought  down  in  new  accounts. 

All  the  accounts  in  the  Leger  ought  now  to  balance  ;  therefore  rule  and  foot 
them,  and  the  books  are  closed.  After  the  accounts  are  closed,  balanced,  ruled 
and  footed,  open  all  such  as  show  a  balance  in  red,  by  bringing  the  Balance 
down  below  the  fines  ;  the  accounts  will  then  be  ready  for  a  continuation  of  en- 
tries and  business. 


OPENING  NEW  BOOKS. 


If,  when  the  books  have  been  closed  according  to  the  directions  given,  there 
should  be  no  necessity  for  opening  new  books,  and  the  business  is  to  be  continued 
in  the  old  ones,  we  open  the  accounts  by  merely  bringing  down  [under  the  old 
heading,  and  below  the  lines]  the  balances  already  written  in  the  accounts  in  red 
ink,  by  writing  "  To  Balance"  or  "  By  Balance,"  as  the  case  may  be. 

But  if  the  books  are  full,  and  it  should  be  necessary  to  open  new  ones,  the 
best  method  is  to  make  an  entry  in  the  new  Day  liook,  composed  from  the  Bal- 
ance Sheet,  showing  the  state  of  the  affairs  at  the  closing  of  the  old  books,  in 
the  following  manner  : — 


OPENING   NEW  BOOKS. 
NEW    YORK,     APRIL    30,     1858, 


55 


Inventory  of  the  Assets  and  Liabilities  of  the  firm  of  Blanchard 
&  Marsh,  as  per  Balance  Sheet  of  this  date,  as  follows  : — 
ASSETS. 

Cash, balance  on  hand, $  26,274  07 

Merchandise, per  Inventory, 15,000  00 

Notes  in  our  favor, as  per  Bill  Book, ....       6,998  35 

Store  Fixtures, valuation, 210  00 

Schooner  Josephine, first  cost, 5,000 


167 

395 

307 

3,500 


Charles  Lawrence, balance  in  our  favor, 

S.  Lovell, balance  in  our  favor, 

Walter  Howard, balance  in  our  favor, . . . 

Shipment  to  Boston, of  April  30,  1858, . . 

Company  2  Merchandise, our  §  on  hand, . 

LIABILITIES. 

Our  Notes  outstanding, as  per  Bill  Book, .       4,137  11 

Paul  Harris, balance  in  his  favor, 4,988  20 


3,333  33 


Net  Capital, 

Of  which  Thomas  Blanchard's  share  is $  31,144  07 

Of  which  C.  C.  Marsh's  share  is 20,976  30 


The  Journal  entry  of  the  preceding  Day  Book  entry  would  be  such  as  to  show 
several  debtors  and  several  creditors.  The  debtors  are  all  those  properties  and 
persons. which  owe  us,  and  the  creditors  those  that  we  owe.  For  the  balance 
between  these,  which  is  the  net  capital,  the  firm  owes  the  individual  partners, 
and  they  should  be  credited,  thus  : — 

Sundries  Dr.  To  Sundries. 

Cash $26,274  07 

Merchandise 15,000  00 

Bills  Receivable 6,998  35 

Store  Fixtures 270  00 

Schooner  Josephine 5,000  00 

Charles  Lawrence 167  31 

S.  H.  Lovell 395  00 

Walter  Howard 307  62 

Shipment  to  Boston 3,500  00 

Company  2  Merchandise ! .  3,333  33  $61,245  68 

To  Bills  Payable 4,137  11 

"  Paul  Harris 4,988  20 

"  Thomas  Blanchard 31,144  07 

"  C.  C.  Marsh 20,976  30     61,245  68 


When  the  above  entry  is  posted,  the  new  books  will  be  opened. 


56  JOURNALIZING. 


BUSINESS    OF    MAY. 

Embracing  Entries  of  about  one  hundred  Transactions,  in  a  condensed  Form,  relating  to— 
Clerks'  Salaries  —Delivering  Note  for  Debt  due — Investing  Money  in  Stocks — Receiving 
Account  Sales— Receiving  Account  Current  with  Balance  of  Interest— Receiving  Draft  for 
Balance  of  Account— Delivering  Note  on  Open  Policy— Shipments  in  Joint  Account — 
Monthly  Entry  of  Purchases — Monthly  Entry  of  Sales— Monthly  Entry  of  Cash  received — 
Monthly  Entry  of  Cash  paid— Correcting  errors. 

Transaction  of  May  16. 

The  Erie  railroad  stock,  which  we  buy  in  this  transaction,  has  cost  us  only 
$4,000  ;  the  discount  on  the  draft  is  no  part  of  the  cost  of  the  stock.  The  stock, 
therefore,  owes  us  $4,000.  When  we  receive  any  dividends  on  this  stock,  we 
shall  credit  it  for  the  interest  it  produces  us. 

Exchange  costs  us,  in  this  transaction,  $20.10,  for  which  it  is  debtor. 

We  owe  to  Messrs.  Eaton  &  Co.  for  the  amount  we  draw  on  them,  or  order 
them  to  pay  for  us  ;  they  are  therefore  creditors. 

Transaction  of  Mat  23. 

In  the  transaction  of  this  date,  we  ship  an  invoice  of  goods  in  joint  account 
with  Mr.  Austin  ;  we  ship  then  half  of  the  invoice  for  him,  and  half  for  ourselves  : 
therefore,  he  must  owe  us  for  his  half  of  the  shipment,  and  the  shipment  owes  us 
for  what  it  has  cost  us  for  our  half.  We  owe  whatever  contributes  to  make  up 
the  amount  of  the  shipment. 

Day  Book — The  four  Entries  of  May  31. 

The  entries  in  the  Day  Book  of  this  month  are  introduced  for  the  purpose  of 
showing  a  plan  of  making  monthly  or  weekly  entries,  which  shall  include  all  the 
simple  transactions  of  the  house — that  is,  the  simple  purchases  and  sales  of  mer- 
chandise, simple  cash  receipts,  and  simple  cash  payments  :  such  entries  to  be 
made  up,  at  the  end  of  each  month  or  week,  from  the  following  books,  viz.  :  In- 
voice Book,  Sales  Book,  and  Cash  Book. 

The  first  of  the  four  entries  in  the  Day  Book  under  this  date,  is  supposed  to 
have  been  taken  or  composed  from  the  Invoice  Book.  It  includes  all  the  pur- 
chases of  merchandise,  during  the  month,  for  notes  or  on  account.  The  purchases 
for  cash  do  not  come  into  this  entry,  but  are  included  in  the  entry  taken  from  the  Cash 
Book. 

The  second  of  the  four  entries  in  the  Day  Book  of  this  month,  is  supposed  to 
be  composed  from  the  Sales  Book.  It  embraces  all  the  sales  of  merchandise, 
except  the  cash  sales  ;  these  come  into  the  Day  Book  from  the  Cash  Book,  with 
all  other  cash  receipts. 

The  third  of  the  four  Day  Book  entries  of  this  date,  is  drawn  from  the  debtor 
side  of  the  Cash  Book.  It  includes,  in  a  condensed  form,  all  the  sums  of  money 
received  during  the  month.  The  sums  received  of  persons,  and  for  which  they 
should  be  credited,  are  shown  separately  with  the  dates  ;  but  the  other  sums  are 
brought  in  aggregate  amounts. 

The  last  of  the  four  Day  Book  entries  of  this  date  we  will  suppose  is  composed 


MONTHLY    ENTRIES.  57 

from  the  creditor  side  of  the  Cash  Book.  It  comprises  all  the  sums  of  cash  paid 
out  during  the  month  ;  those  paid  for  merchandise,  expenses,  interest,  and  all 
other  objects  (except  persons  who  owe  us),  in  aggregate  amounts. 

This  monthly  entry  plan  of  writing  up  the  business  of  a  house,  is  much  admir- 
ed, and  possesses  many  advantages  over  the  method  of  making  separate  Day 
Book  and  Journal  entries  of  all  transactions.  Among  its  advantages  may  be 
enumerated  the  following  : — ■ 

1st.  It  exhibits  nearly  the  whole  of  the  business  of  the  month  in  only  four 
Day  Book  entries  ;  thereby  affording,  monthly,  a  very  clear  and  satisfactory 
view  of  the  business. 

2d.  The  posting  is  reduced,  not  a  hundred  per  cent.,  but  to  a  hundredth  part 
of  what  it  would  be  on  the  daily  or  separate  entry  plan. 

3d.  Omissions  or  errors,  in  transferring  sums  to  the  Day  Book  from  the  Cash 
Book,  Invoice  Book,  and  Sales  Book,  can  not  occur,  because  the  addition  of  each 
Day  Book  entry  must  agree  with  the  addition  of  the  book  from  which  it  is 
brought. 

4th.  The  accounts  of  Merchandise,  Cash,  Bills  Receivable,  Bills  Payable,  Ex- 
penses and  Interest,  which  generally  cover  many  folios  in  the  Leger,  to  no  pur- 
pose, become,  as  they  should,  the  shortest — not  having  on  them  more  than  twelve 
or  twenty-four  sums  in  a  year. 

It  must  be  understood  and  remembered,  that  the  monthly  entries  can  embrace 
no  transaction  which  does  not  appear  in  full  and  complete  in  either  the  Cash 
Book,  Invoice  Book,  or  Sales  Book  ;  and  that  any  transaction  that  can  not  be 
made  a  purchase  or  sale  of  merchandise,  or  a  cash  receipt  or  payment,  must  have 
a  separate  Day  Book  entry  at  the  time  it  occurs,  and  must  be  journalized  and 
posted  separately. 

The  monthly  entry  plan  is  not  as  simple  as  the  other.  To  adapt  it  successfully, 
one  must  be  well  acquainted  with  the  subject,  and  thoroughly  understand  how  to 
conduct  a  set  of  books  on  the  daily  or  separate  entry  method. 

Day  Book — May  30.  (Last  Entry.) 

This  entry  is  made  to  give  a  sample  of  a  day  book  entry  to  correct  errors 
which  may  sometimes  be  discovered  after  an  account  has  been  closed.  As  Mr. 
Harris  was  charged  for  an  amount  for  which  he  should  have  been  credited,  it  is 
now  necessary  to  credit  him  for  double  that  sum. 

8 


QUESTIONS  AND  ANSWERS, 

RELATING   TO 

OPENING,  CONDUCTING,  AND  CLOSING  BOOKS. 


OPENING    BOOKS. 

1.  Question — What  is  meant  by  opening  books  or  accounts  ? 

Answer — Commencing  the  records  of  a  business  in  a  systematic  manner. 
2. — With  what  records  or  entries  does  a  business  generally  commence  ? 

With  the  circumstances  of  the  person  commencing  business :  with  a  statement 
of  his  capital. 
3. — When  a  person  begins  business  without  capital,  what  will  be  the  first  entry 
in  his  books  ? 
The  first  transaction  that  occurs — a  purchase  or  aught  else. 
4. — If<i  person  begins  business  without  capital,  and  owes  to  John  Sims  $1,000, 
what  will  be  his  Journal  entry  1 
Supposing  his  name  to  be  Thomas  Blanchard,  his  Journal  entry  will  be — 
Thomas  Blanchard  Dr. 

To  John  Sims $1,000  00 

5. — If  the  first  transaction  in  your  books  should  be  the  purchase  of  50  bales  of 
cotton,  of  John  Sims,  on  credit,  amounting  to  $2,000,  what  would  be  your 
Journal  entry  ? 
Merchandise  Dr. 

To  John  Sims $2,000  00 

6. — Why  is  that  your  Journal  entry  ? 

Because  it  shows  all  the  debtors  and  creditors  of  the  transaction. 
7. — Why  do  you  make  Merchandise  debtor,  and  John  Sims  creditor,  in  that 
transaction  ? 
The  Merchandise  is  debtor,  because  it  owes  me  for  what  it  has  cost  me  ;  and 
Sims  is  creditor,  because  I  owe  him — not  having  paid  him  for  the  cotton. 
8. — What  would  be  your  Journal  entry,  if,  at  the  commencement  of  your  busi- 
ness, you  borrow  of  J.  Sims,  cash — $3,000  ? 
Cash  Dr. 

To  John  Sims $3,000  00 

9. — What  would  be  your  Journal  entry,  if  you  begin  business  with  a  capital,  in 
cash,  of  $10,000  ? 
Supposing  my  name  to  be  Thos.  Blanchard,  my  entry  would  be — 
Cash  Dr. 

To  Thomas  Blanchard $10,000  00 

10. — How  do  you  explain  this  entry  ? 

Cash  is  the  species  of  property  which  owes  me  for  my  capital ;  therefore  it  is 
debtor.  Nothing  can  be  debtor  in  my  books,  unless  it  owes  me.  I  am 
creditor,  because  I  am  possessed  of  $10,000  capital,  for  which  I  owe  no 
one. 

58 


QUESTIONS    AND    ANSWERS.  59 

11. — Why  do  you  not,  in  opening  your  books,  credit  an  account  called  "Stock/' 
for  your  net  capital  ? 
By  so  doing,  I  should  be  calling  myself  "  Stock"  [that  being  the  name  given 
to  the  proprietor  in  some  systems  of  book-keeping],  and  I  do  not  perceive  | 
any  good  reason  for  substituting  that  name  for  my  own. 

Note. — Where  there  are  many  partners  in  a  business,  as  in  a  banking  or  railroad 
company,  there  is  kept  an  extra  Leger,  containing  only  the  accounts  of  the  partners. — 
In  such  cases,  there  must  be  an  account  in  the  principal  Leger  to  represent  all  those  in 
the  extra  Leger :  that  account  may  be  called  "  Stock,"  "  Stockholders,"  or  "  Share- 
holders." 

12. — When  several  persons  commence  a  partnership  in  company,  and  all  do  not 
advance  their  portions  of  the  capital,  how  would  be  your  Journal  entry  ? 
I  should  credit  such  only  as  advanced  capital,  and  neither  debit  nor  credit 
the  others. 
13. — Will  you  imagine  for  me  a  Day  Book  of  the  commencement  of  a  single  bu- 
siness, supposing  the  party  to  owe  and  be  owed,  and  that  your  name  is 
,  Thomas  Blanchard  ? 

I,  Thomas  Blanchard,  commence  business  under  the  following  circumstan- 
ces:— 

I  have  in  cash,  deposited  in  Bank . . .  .$1,000  00 

I  owe  to  John  Sims,  on  account 100  00 

My  net  capital $900  00 

Or  thus : — 

Assets  and  Liabilities  of  Thomas  Blanchard,  per  Inventory  taken  this 
day:— 

Cash,  balance  in  bank $1,000  00 

Balance  due  John  Sims,  on  account 100  00 

Net  capital $900  00 

14. — In  what  manner  will  you  Journalize  these  entries  ? 
I  should  Journalize  them  both  thus  : — 

Cash  Dr.  To  Sundries. 

To  John  Sims $100  00 

"  Thomas  Blanchard 900  00    $1,000  00 

CONDUCTING  OR  KEEPING   ACCOUNTS. 

15. — Which  is  the  most  important  book  of  a  set  of  account  books  ? 

The  Day  Book  ;  because  it  gives  a  complete  history  of  our  business,  which 
we  do  not  expect  to  find  in  the  others.  In  some  systems,  the  Day  Book 
is  a  mere  blotter,  and  the  transactions  entered  therein  are  repeated,  with 
explanations,  in  the  Journal ;  in  that  case,  the  Journal  is  the  most  im- 
portant. 

16. — How,  or  in  what  manner,  should  Day  Book  entries  be  written  ? 

Day  Book  entries  should  be  written  in  clear  and  simple  sentences  :  the  dif- 
ferent parts  of  a  transaction  should  be  stated  in  the  order  in  which  they 


60  QUESTIONS    AND    ANSWERS. 

occur.     I  do  not  think  the  words  debtor  and  creditor  should  be  used  in 
Day  Book  entries,  but  merely  a  simple  record  of  the  transaction. 
IT.     From  what  sources  do  you  get  the  Day  Book  entries  ? 

Few  transactions  appear  first  in  the  Day  Book,  although  it  is  often  called 
the  book  of  original  entry.     Entries  in  the  Day  Book  are  drawn  from 
various  sources — generally  from  the  Invoice  Book,  Sales  Book,  Cash 
Book,  and  Bill  Book. 
18. — What  do  you  consider  to  be  the  object  of  the  Journal  ? 

To  exhibit  the  debtors  and  creditors,  which  arise  from  mercantile  transac- 
tions, separated  from  the  sentences  of  explanation  contained  in  the  Day 
Book,  that  they  may  be  more  easily  and  correctly  transferred  to  the 
Leger. 
19. — By  what  principle  or  rule  do  you  distinguish  debtors  and  creditors,  or 
make  Journal  entries  ? 
The  rule  I  use  is  this  :  All  those  persons  and  things  which  I  think  owe 
me,  I  call  Debtors  ;  and  all  those  which  I  owe,  I  call  Creditors. 
20. — In  a  transaction  where  there  are  many  sums,  how  do  you  know  whieh  sum 
to  affix  to  the  name  of  a  debtor  ? 
After  reflecting  well  on  the  transaction,  I  affix  the  sum  which  I  can  demand 
of  him  or  it. 
21. — Will  you  explain  to  me  how  things  or  objects  can  owe  us  when  we  have 
them? 
Perhaps  we  had  better  begin  with  the  definition  of  the  word  dollar. 
22. — Very  well ;  how  do  you  define  the  word  dollar  ? 

Dollar  is  both  the  name  of  a  coin,  and  the  name  of  a  measure  of  a  quantity 
of  value.     As  a  measure,  it  conveys  the  same  idea  of  value  as  yard  does 
of  space,  pound  of  weight.     A  pound  is  a  measure  of  weight,  and  a  dollar 
is  a  measure  of  value.    We  may  have  ten  yards  of  cloth,  ten  feet  of  land, 
ten  pounds  of  iron  or  gold  :  we  may  have  ten  dollars  in  either  of  these 
articles,  as  well  as  in  cash  or  money. 
23. — Well,  if  I  have  $1,000,  how  can  there  be  any  debt,  when  I  have  the  sum  ? 
If  you  have  $1,000,  you  must  have  that  amount  of  value  in  some  kind  of 
property,  because  that  sum  is  only  a  quantity  of  value  (unless  you  speak 
of  a  thousand  pieces  of  coin) ;   therefore,  finish  your  question,  and  tell  me 
what  you  have  the  value  in  ? 
24. — If  I  have  $1,000  in  money,  how  does  anything  owe  me  ? 

Money  and  cash  are  only  names  of  property  :  if  you  had  $1,000  in  land  or 
merchandise,  could  not  these  owe  you  for  the  value  invested  in  them  ? 
Why,  then,  does  not  the  money  owe  you  for  that  sum  ? 

25. — But,  is  not  that  imagination  ? 

No,  sir  ;  not  unless  the  law  is  so.  The  law  makes  property  and  things 
liable  for  debts.  The  law  that  supports  your  claim  on  a  person  for  $1,000, 
supports  it  better  on  a  property,  because  it  maintains  you  in  your  au- 
thority over  and  possession  of  the  property,  until  your  claim  is  satisfied. 

26. — You  understand,  then,  that  a  thousand  dollars  means  a  quantity  of  value  ; 
and  if  that  value  be  in  merchandise,  the  merchandise  must  owe  for  that 
value  ;  if  it  be  invested  in  houses  and  lands,  those,  or  real  estate,  must 
owe  for  that  value  ;  and  if  it  be  in  cash  or  money,  it  must  owe  ? 


QUESTIONS    AND    ANSWERS.  61 

Yes,  sir  ;  if  it  is  not  so,  the  science  of  book  keeping  is  wrong,  and  we  can 

never  more  use  the  word  debtor  as  applied  to  things. 
27. — The  science  is  right ;  and  you  will  do  well,  whenever  you  pay  out  any  sum/ 

to  ascertain,  with  care,  what,  as  well  as  who,  you  can  charge  for  it. 
Why  do  you,  in  the  first  entry  of  the  Journal  of  this  book,  carry  out  into 

the  last  column  the  two  amounts  ? 
Merely  to  show  that  the  sums  of  the  debtors,  and  the  sums  of  the  creditors, 

form  two  equal  amounts. 
28. — Why  ought  the  debtor  and  creditor  sums  to  equal  each  other  ? 

When  a  person  owes  us,  we  must  of  necessity  owe  some  thing  for  the  sum 

that  he  owes  us.    This  is  the  case  in  every  transaction ;  therefore  the 

debtor  and  creditor  sum  or  sums  are  always  equal  in  a  correct  Journal 

entry. 

29. — How  do  you  Journalize  this — A  friend  makes  you  a  present  of  $1,000  in 
cash  ?    And  how  explain  it  ? 
Supposing  my  name  to  be  Thos.  Blanchard,  my  entry  would  be — 
Cash  Dr. 

To  Thomas  Blanchard $1,000  00 

Cash  is  debtor,  because  it  owes  me  the  value  it  contains,  or  that  I  have  in 
it ;  and  I,  myself,  become  creditor,  because  I  owe  nobody  for  this  value  : 
it  augments  my  capital. 
30. — I  have  seen  systems  of  book-keeping  in  which  "Profit  and  Loss"  is  credit- 
ed, in  such  a  transaction.     Is  it  wrong,  and  why  ? 
It  is  wrong,  because  "  Profit  and  Loss  "  is  the  account  which  represents 
our  business  :  it  should  show  only  the  gains  and  losses  that  result  from 
the  business.     In  this  transaction,  we  do  not  owe  our  business  for  the 
$1,000,  because  our  business  did  not  produce  the  sum.     If,  therefore,  we 
carry  such  sums  to  the  Profit  and  Loss  account,  the  purpose  for  which  it 
is  opened  will  be  completely  frustrated. 
31. — Which  do  you  place  first  in  a  Journal  entry,  the  debtors  or  the  creditors  ? 
The  names  of  the  debtors.    I  do  not  know  why  they  are  always  placed  be- 
fore the  creditors,  unless  it  be  that  people  generally  think  more  of  their 
debtors  than  they  do  of  their  creditors. 
32. — Very  well  thought  of  !     Can  you  inform  me  why  we  never  see  the  word 
creditor  (Cr.)  in  the  Journal  ? 
Because  the  word  debtor  (Dr.)  distinguishes  the  debtors  ;  and  there  being 
ouly  two  kinds,  one  being  shown,  the  others  must  of  course  be  the  credi- 
tors. 
33. — To  whom  do  the  "  Sundries  "  owe,  in  the  Journal  entry  of  January  19  ? 

They  owe  the  owners  of  the  books — Blanchard  &  Marsh. 
34. — That  entry  reads — "  Sundries  Dr.  to  Oliver  Otis  &  Co."    Why  do  you  say, 
"  to  Blanchard  &  Marsh  ?" 
Because  there  are  certain  words  always  understood  to  follow  the  word  "  Dr.," 
and  certain  others  understood  to  precede  the  names  of  the  creditors,  in 
every  entry  in  the  Journal. 
35. — What  are  those  words  ? 

Those  which  follow  the  term  "  Dr."  are,  "to  ws;"  and  those  that  precede 
the  creditors  are,  "  We  are  debtor." 


62  QUESTIONS    AND    ANSWERS. 

36. — Why  are  not  those  words  used  in  Journal  entries  ? 

Those  words  are  superfluous  ;  because  the  mere  act  of  writing  in  our  books 
any  person  or  thing  Dr.,  indicates  that  that  person  or  thing  is  debtor  to 
us,  or  is  our  debtor. 
37. — What  relation  does  the  Journal  bear  to  the  Day  Book  and  Leger  ? 

An  intermediate  relation — serving  to  convey  the  debtors  and  creditors  from 
the  former  to  the  latter. 
38. — In  Journalizing,  do  you  make  it  a  rule  to  extend*  the  same  sum  in  the  Jour- 
nal that  you  extend  into  the  outer  column  in  the  Day  Book  ? 
By  no  means  :  the  position  that  sums  occupy  in  the  Day  Book  should  be 
no  guide  for  their  position  in  the  Journal. 
39. — Have  you  heard  of  a  rule  for  Journalizing,  founded  on  the  words  "  receive," 
and  "  deliver  ?" 
Yes,  sir — in  these  words  : — 

"  By  Journal  laws,  what  I  receive, 
Is  debtor  made  to  what  I  give." 

40. — How  does  this  rule  apply,  and  how  not  ? 

This  rule  originates  in  the  coincidence  that  things  are  often  debtor  and  re- 
ceived at  the  same  time.  But  this  is  far  from  being  always  the  case  ;  a 
striking  instance  may  be  found  in  the  transaction  of  3d  of  April  in  this 
volume.  But  if  the  things  received  were  always  debtors,  and  those  de- 
livered, creditors,  such  a  rule  would  be  unworthy  of  science,  because,  to 
admit  this  rule,  one  must  admit  that  the  word  receive  means  debtor,  and 
that  deliver  signifies  creditor. 
41. — For  what  purpose  is  the  Leger  ? 

To  show  the  accounts  of  all  those  that  owe  us,  and  of  all  those  that  we  owe 
42. — What  do  you  understand  by  posting  or  legerizing  ? 

Transferring  the  sums  from  the  Journal  to  the  Leger.    Posting  sometimes 
includes  Journalizing. 
43. — How  often  should  books  be  posted  ? 

Daily,  weekly,  or  monthly,  according  to  the  nature  of  the  business. 
44. — What  are  the  names  of  the  auxiliary  books  ? 

Cash  Book,  Invoice  Book,  Sales  Book,  and  Bill  Book.    These  are  the  prin- 
cipal, and  appear  indispensable  in  every  business. 
45. — What  is  the  use  of  the  Cash  Book  ? 

It  shows  every  sum  of  cash  or  money  which  we  receive  or  pay.  It  serves 
as  a  check  on  that  kind  of  property  ;  for  the  balance  between  its  debtor 
and  creditor  sides,  should  agree  with  the  money  on  hand. 

46. — When  do  you  balance  the  Cash  Book,  and  how  ? 

Daily — when  the  business  of  the  day  is  over.  The  book  is  balanced  thus  : 
Obtain  the  difference  between  the  debtor  and  creditor  pages,  see  that  the 
difference  agrees  with  the  money  we  have  on  hand,  and  make  an  entry 
on  the  credit  side  by  writing  "  Balance  on  hand  "  with  the  difference  ; 
and  when  the  account  is  ruled  and  footed,  it  will  be  balanced. 

4f  — When  should  entries  be  made  in  the  Invoice  Book  ? 

At  the  time  the  goods  are  received,  the  invoice,  or  bill  of  them,  should  be 
copied  in  the  book. 


QUESTIONS     AND    ANSWERS.  03 

48. — When  are  entries  to  be  made  in  the  Sales  Book  ? 

At  the  time  the  goods  are  selected,  or  ordered  by  the  purchaser,  they  should 
be  described — quantity,  quality,  and  price — in  the  Sales  Book. 
49. — When,  and  how,  do  you  take  entries  from  the  Invoice  and  Sales  Books  to 
the  Day  Book  ? 
Single  purchases  and  sales  may  be  carried  from  the  Invoice  and  Sales  Books 
to  the  Day  Book  separately,  if  they  are  of  large  amounts ;  or,  we  may 
with  propriety  convey  the  purchases  of  a  month  or  week,  from  the  Invoice 
Book  to  the  Day  Book,  in  only  one  entry  ;  and  the  sales  may  be  taken 
into  the  Day  Book  in  the  same  manner. 
50. — What  advantage  is  there  in  making  monthly  entries  from  the  Invoice  and 
Sales  Books  into  the  Day  Book,  over  that  of  carrying  the  purchases  and 
sales  into  the  Day  Book  in  separate  entries  ? 
Considerable  time  and  space  are  saved  ;  for,  by  the  monthly  method,  the 
sales  and  purchases  go  to  the  merchandise  account  in  totals. 
51. — When  should  entries  be  made  in  the  Bill  Book  ? 

When  notes  are  issued  or  received,  and  when  they  are  paid  or  negotiated. 
52. — We  know  many  book-keepers  who  post  directly  from  the  Invoice,  Sales,  and 
Cash  Books,  to  the  Leger.  What  is  there  objectionable  in  that  method  ? 
When  that  method  is  pursued,  there  will  be  no  book  of  the  set  that  will 
show  a  complete  history  of  the  business,  or  a  record  of  the  transactions 
as  they  occurred  ;  and  if  at  any  period  the  books  should  not  balance,  the 
trouble  of  finding  the  errors  would  be  greatly  augmented. 

Note. — There  are  some  houses  in  which  the  transactions,  particularly  the  sales,  are 
so  numerous  that  it  is  necessary  to  adopt  the  most  abbreviated  system,  or  the  book- 
keeper would  soon  be  far  in  the  rear  of  the  business.  By  the  method  referred  to,  no 
book  called  Journal  is  used  ;  but,  nevertheless,  all  the  knowledge  which  that  book 
embraces,  is  required,  even  in  a  greater  ratio,  because  that  system  makes  the  Cash, 
Invoice,  and  Sales  Books,  serve  the  double  purpose  of  Journals. 

53.— What  is  a  Trial  Balance  ? 

It  is  a  sheet  which  shows  the  balances  of  all  the  accounts  in  the  Leger,  ar- 
ranged in  two  columns — one  of  debtors,  and  one  of  creditors. 
54. — What  is  the  particular  object  of  the  Trial  Balance  ? 

To  prove  the  books,  and  to  exhibit  the  balances,  showing  what  is  termed 
the  face  of  the  Leger.     If  the  posting,  additions,  and  subtractions,  are  cor- 
rect, the  two  columns  will  add  up  alike. 
55. — Should  they  not  equal,  how  would  you  proceed  to  find  the  errors  ? 

1st.  By  examining  the  Journal  entries,  to  see  if  the  debtors  and  creditors 

in  each  entry  equal  each  other.     2d.  By  examining  the  posting  from  the 

Journal  to  the  Leger,  and  by  re-adding  and  re-subtracting  the  accounts 

in  the  Leger.     I  would  repeat  these,  until  I  had  found  the  error  or  errors. 

50. — How  often  is  it  necessary  to  make  a  Trial  Balance  ? 

Monthly,  or  quarterly.     Sometimes  it  is  left  until  the  end  of  a  year,  when 
it  rarely  balances. 
5t. — If  you  buy  merchandise  for  cash,  in  what  books  do  you  make  entries  ? 

In  the  Cash,  Invoice,  and  Day  Books. 
58. — If  you  buy  merchandise  on  credit  ? 
In  the  Invoice  and  Day  Books. 


64  QUESTIONS    AND     ANSWERS. 

59. — If  you  buy  merchandise  on  your  note  ? 

In  the  Invoice,  Bill,  and  Day  Books. 
GO. — If  you  merely  exchange  merchandise  ? 

In  the  Invoice  and  Sales  Books. 
01. — If  you  sell  merchandise  on  credit? 

In  the  Sales  and  Day  Books. 
62. — If  you  sell  merchandise  for  cash  ? 

In  the  Sales,  Cash,  and  Day  Books. 
63. — If  you  sell  merchandise  to  John  Sims  on  his  note  ? 

In  the  Sales,  Bill,  and  Day  Books. 
64. — If  you  receive  money  of  John  Sims  ? 

In  the  Cash  and  Day  Books. 
05. — If  John  Sims  pays  a  note  you  hold  against  him  ? 

In  the  Cash,  Bill,  and  Day  Books. 
00. — If  you  pay  for  postages  ? 

In  a  petty  Cash  Book. 
01. — If  you  pay  rent  of  your  store  ? 

In  the  Cash  Book  and  Day  Book. 
08. — If  there  is  to-day  due  J.  Sims,  for  services  as  clerk  in  your  employment, 
$500? 

In  the  Day  Book. 
09. — "Will  you  make  the  Day  Book  entry  ? 

Amount  of  salary  due  John  Sims  for  services  as  clerk,  up  to  this 

date $500  00 

10. — What  is  your  Journal  entry  ? 

Store  Expenses  Dr. 

To  John  Sims $500  00 

11. — Suppose,  after  posting  the  above,  the  balance  of  J.  Sims'  account  is  $200, 
and  that  you  pay  it :  what  will  be  your  Journal  entry  ? 

John  Sims  Dr. 

To  Cash $200  00 

12. — If  you  pay  the  rent  of  your  dwelling-house,  in  what  books  do  you  enter  ? 
In  the  Cash  Book  and  Day  Book. 

13. — What  would  be  your  Journal  entry  ? 

Thos.  Blanchard  (my  name)         Dr. 

To  Cash $250  00 

14. — If  you  pay  your  note,  now  due,  in  what  books  do  you  make  entries  ? 

In  the  Cash,  Bill,  and  Day  Books. 
15. — If  you  deliver  your  note  to  P.  Harris  for  balance  of  account  ? 

In  the  Bill  and  Day  Books. 
10. — If  P.  Harris  gives  you  his  note  for  balance  of  account  ? 

In  the  Bill  and  Day  Books. 
^. — What  difference  is  there  between  those  notes? 

One  is  in  my  favor  ;  the  other  against  me.     I  call  one  "  Bills  Receivable  ;" 
the  other,  "  Bills  Payable." 


QUESTIONS    AND     ANSWERS.  65 

78. — If  P.  Harris's  note  in  your  favor  is  due,  and  remains  unpaid,  in  what  books 
do  you  make  entries  ? 
In  the  Bill  Book  and  Day  Book. 
19. — What  will  be  your  Journal  entry  ? 
P.  Harris  Dr. 

To  Bills  Receivable $1,000  00 

80. — How  can  you  call  Mr.  Harris  a  debtor,  when  you  still  hold  the  note  ?  Does 
not  the  note  owe  you  now,  as  well  as  it  did  before  ? 
I  think  not,  sir.  The  time,  of  the  note  has  expired — it  is  now  dead.  Before 
the  note  was  due,  we  could  demand  nothing  of  Mr.  Harris  ;  when  it  is 
due,  our  claim  begins  on  its  author  ;  "  the  law  allows  it,  and  the  court 
awards  it." 

Note. — We  are  aware  that  many  book-keepers  do  not  charge  the  parties  to  notes  for 
their  amounts  when  due  ;  but  it  is  the  more  regular  way  to  do  so.  The  party  to  a 
note  over  due,  undoubtedly  owes  the  amount,  and  interest  from  the  date  it  became 
due  ;  therefore  his  account  should  show  it. 

81. — When  we  say,  "Mr.  Harris's  note  (or  acceptance)  is  due  and  paid,"  what 
kind  of  a  note  is  spoken  of  ? 

Harris's  note  "  means  a  note  that  Harris  wrote  or  signed — a  note  against 
him,  and  not  a  note  belonging  to  him. 

82. — If  Mr.  James  owes  you  $100,  and  you  accept  $98  for  it,  what  will  be  your 
Journal  entry  ? 
Sundries  Dr.  To  J.  Jame3. 

Cash $98  00 

Profit  and  Loss ' 2  00  $100  00 

83. — If  you  draw  on  a  person,  does  he  become  your  debtor  or  creditor,  and  in 
what  books  do  you  make  entries  ? 
My  creditor.     I  make  entries  in  the  Day  Book  ;  and  iu  the  Bill  Book  if 
the  draft  is  in  my  favor. 
84. — Why  your  creditor  ? 

Because  I  owe  him  the  sum  for  which  I  have  drawn  :  drawing  on  him  is 
drawing  from  him. 

85. — Should  the  draft  be  returned,  in  what  books  will  you  make  entries  ? 

In  the  Day  Book  and  Bill  Book. 
86. — What  is  accepting  a  draft  ? 

Writing  one's  name  across  the  face  of  it,  by  which  one  agrees  to  pay  it 
when  due. 

CLOSINQ  ACCOUNTS. 


87. — What  do  you  understand  by  closing  accounts,  or  balancing  books  ? 

By  closing  accounts,  we  mean  the  act  of  rendering  the  debtor  and  creditor 
sides  of  every  account  equal.  This  is  done  by  transferring  the  balances 
from  the  many  accounts  to  only  two  accounts,  and  there  showing  the  re- 
sult of  the  business  in  a  form  so  condensed  as  to  be  seen  at  one  view. 

9 


66  QUESTIONS    AND    ANSWERS. 

88. — To  what  do  we  first  direct  our  attention,  in  balancing  or  closing  books  ? 

To  the  Trial  Balance. 
89. — After  that,  what  next  claims  our  attention  ? 

The  Balance  Sheet ;  by  which  we  show  the  result  of  our  business — our 
assets  and  liabilities,  our  gains  and  losses. 

90. — Why  is  it  necessary  to  close  the  books,  when  the  Balance  Sheet  exhibits  the 
situation  of  the  affairs  ? 
The  Balance  Sheet  may  suffice  for  the  closing,  when  the  books  are  not  to 
be  changed  ;  but  when  the  gain  or  loss  is  to  be  divided  and  carried  to 
the  partners'  accounts,  or  when  new  books  are  to  be  brought  into  use, 
the  closing  entries  in  the  Day  Book,  Journal,  and  Leger,  become  neces- 
sary. 

91. — What  follows  the  Balance  Sheet,  in  closing  the  books  ? 

We  proceed  then  to  make  entries  in  the  Day  Book,  composed  from  the  con- 
tents of  the  Balance  Sheet,  which  we  Journalize  and  post. 

92. — Which  side  of  the  Cash  account  can  exceed  the  other  ? 

The  debtor  side.    The  creditor  side  can  never  exceed  the  debtor,  and  be 
correct. 

93. — Why  is  the  debtor  side  of  the  Cash  account  generally  more  in  amount  than 
the  creditor  ? 
Because  that  kind  of  property  called  cash  is  of  an  unvarying  value  ;  it 
comes  in  and  goes  out  of  our  possession,  or  is  bought  and  sold,  at  the 
same  price  ;  because  we  can  not  pay  out  more  money  than  we  have  re- 
ceived. 

94. — To  what  account  do  you  transfer  the  balances  of  property  and  debts,  at 
the  closing  of  the  books  ? 
To  an  account  called  "  Balances,"  opened  for  that  purpose. 

95. — To  what  account  do  you  transfer  the  balances  of  gains  and  losses,  at  the 
closing  ? 
To  the  "  Profit  and  Loss  "  account. 

96. — To  where  do  you  transfer  the  balance  of  the  "  Profit  and  Loss  "  account  ? 
To  the  accounts  of  the  partners,  or  to  that  of  the  owner  of  the  books. 

91. — Which  side  of  the  account  of  Bills  Receivable  can  exceed  ? 

The  debtor.    The  excess  ought  to  agree  with  the  notes  on  hand,  as  appears 
by  the  BUI  Book. 

98. — Which  side  of  the  account  of  Bills  Payable  can  exceed  ? 

The  creditor.     The  excess  should  agree  with  the  amount  of  notes  out  against 
us,  as  appears  by  the  Bill  Book. 

99. — Is  there  more  than  one  method  of  making  an  Account  Current  ? 

There  are  three  methods  :  1st,  without  interest ;  2d,  with  interest ;  and 
3d,  by  averaging,  to  find  when  the  balance  is  due. 

100. — Which  part  of  book-keeping  embraces  most  of  the  science  ? 
That  part  called  Journalizing. 

101. — When  a  set  of  books  is  kept  by  double-entry,  and  the  book-keeper  dis- 
penses with  the  Journal,  does  he  dispense  with  Journalizing  ? 


QUESTIONS    AND     ANSWERS.  61 

No,  sir.  The  Journalizing  must  be  done  somewhere  :  the  principle  of  the 
Journal  must  regulate  or  govern  all  his  entries. 

102. — A  certain  Note  for  $2,000  (No.  19  in  these  Books)  drawn )bj  C.  Bernard, 
is  deemed  to  be  bad.  In  relation  to  this  Note  Mr.  Blanchard  says  to  his 
partner — "  I  will  sell  my  half  interest  in  Bernard's  Note  for  $500  ;  do 
you  know  any  one  who  will  buy  it  ?  Mr.  Marsh  replies — "  Yes,  sir  ;  I 
will  give  you  that  sum  for  your  half  of  the  Note."  The  Note  was  in  con- 
sequence endorsed  over  to  Mr.  Marsh  ;  and  the  Book-keeper  was  instruct- 
ed to  make  the  necessary  entries. 

103. — What  Journal  entry  would  you  make  to  dispose  of  this  affair  in  the  Books 
of  the  firm  ? 


(Sir 


%*  This  work  is  published  in  the  Spanish  Language  in  the  same  style. 


DIRECTIONS  TO  TEACHERS. 


It  is  evident,  since  book-keeping  is  the  disposition  of  business  transactions  in 
account-books,  that  there  is  no  more  effectual  way  of  teaching  that  science  than 
that  of  furnishing  the  pupil  with  a  course  of  well-selected  mercantile  transactions, 
of  teaching  him  to  make  the  entries  of  the  same  in  the  different  account  books, 
and  dispensing  the  necessary  instruction  as  the  transactions  arise  and  the  occa- 
sion may  require.  In  this  manner  the  pupil  becomes  familiar  with  the  forms  and 
objects  of  all  the  accouut  books  in  common  use  in  mercantile  or  commercial 
houses,  gains  no  insignificant  idea  of  business  affairs,  and  eventually  arrives  at  a 
just  conception  of  the  science — its  theory  and  practice.  Such  a  method  of  teach- 
ing book-keeping  is  undoubtedly  the  most  natural,  interesting,  and  practical  ; 
and  I  know,  from  many  years'  experience,  that  very  beneficial  results  accrue  to 
the  pupil  when  it  is  pursued  under  the  guidance  of  any  intelligent  teacher. 

In  order  that  the  pupil  may  enter  upon  the  course  of  instruction  laid  down  in 
this  work  for  him  to  pass  through,  let  him  have  a  set  of  six  blank  books — Day 
Book,  Journal,  Leger  and  Index,  Cash  Book,  and  Bill  Book.*  The  first  three 
may  each  contain  eight  sheets  of  cap  paper,  ruled  to  correspond  with  those  books  ; 
the  other  two  may  contain  about  three  sheets  each,  ruled,  &c.  Next,  let  the 
pupil  transcribe  into  his  Day  Book  the  transactions  of  January,  from  the  Day 
Book  of  this  volume,  inserting  his  own  name  in  place  of  Thomas  Blanchard. 
The  entries  of  the  notes  in  the  Bill  Book  should  be  made  at  the  time  of  copying 
the  Day  Book  entries,  as  the  notes  arise  in  the  transactions.  The  same  in  re- 
spect to  the  Cash  Book  ;  let  the  pupil  enter  in  it  all  the  sums  of  money  received 
and  paid,  as  he  receives  and  pays  them,  composing  his  entries  from  the  Day  Book 


*As  the  Iavoice  and  Sales  Books  include  nothing  more  than  descriptions  of  goods  bought 
and  sold,  it  is  not  thought  worth  while  to  introduce  them  into  the  course.  Blank  Books  in 
*ets  (six  to  the  set),  arranged  by  the  Author,  may  be  obtained  of  the  Publisher. 

63 


DIRECTIONS    TO    TEACHERS.  69 

on  a  separate  sheet,  and,  when  correct,  copying  them  into  his  Cash  Book.  Next 
let  the  pupil  begin  to  journalize  :  he  will  make  his  Journal  entries  first  on  a  sepa- 
rate sheet,  and,  when  found  correct,  copy  them  into  his  Journal.  Next,  he  will 
post,  or  make  entries  in  his  Leger  ;  and,  lastly,  make  a  trial  balance  from  the 
Leger.  He  may  balance  the  Cash  Book  one,  two,  or  more  times  during  the 
month. 

If  one  part  of  the  science  is  to  receive  more  attention  than  the  other,  it  is  the 
journalizing  ;  this  is  fully  and  constantly  explained,  and  the  explanations  dated 
to  correspond  with  the  transactions  and  entries.  In  general,  the  order  of  pro 
ceeding  with  the  course  of  instruction  is  most  carefully  delineated  in  the  first 
sixty-seven  pages  ;  and  it  is  confidently  believed  that  teachers  will  find  the  con- 
tents of  this  book  very  conveniently  arranged  for  teaching  in  classes  or  otherwise 


11 


sc 


f 

/ 


NOTE. 

This  book  is  designed  to  contain  a  complete  history  of  the  business. 

Entries  in  this  book  are  made  up  from  various  sources  ;  those  embracing  sales 
are  taken  from  the  Sales  Book  ;  those  embracing  purchases  of  goods  are  taken 
from  the  Invoice  Book  ;  cash  sums  come  from  the  Cash  Book  ;  notes  given  or 
received  come  from  the  Bill  Book  ;  while  others,  of  a  different  or  various  nature, 
appear  first  in  the  Day  Book. 

The  only  rule  I  can  give  for  making  or  composing  entries  in  the  Day  Book  is 
this  :  adhere  to  the  truth,  state  the  transaction  with  its  parts  in  the  order  that 
they  occur,  use  as  few  words  as  possible,  and  let  them  be  to  the  point  or  purpose. 

From  this  book  the  transactions  pass  in  a  journalized  form,  into  the  Journal. 

The  transactions  of  the  months  of  January,  February,  and  May,  contained  in 
the  following  Day  Book,  are  journalized  according  to  two  several  forms  of  Jour- 
nal :  the  first  gives  the  entries  in  the  pure  journal  form  and  therefore  contains  no 
sentences  of  explanation  ;  the  second  is  a  plan  of  entry  which  participates  of  both 
the  Journal  and  Day  Book,  and  it  therefore  embraces,  with  the  names  of  the 
debtors  and  creditors,  sentences  of  explanation.  This  last  plan  dispenses  with  a 
separate  Day  Book,  (except  when  kept  merely  as  a  "  Blotter/  )  and  has  the 
advantage  of  being  a  little  shorter,  while  it  loses  somewhat  in  clearness.  A 
learner  should  keep  the  two  books  separate  and  distinct  ;  he  may  adopt  the 
briefer  method  when  he  understands  the  science. 


72 


NEW  YORK,   JANUARY    5,    185 


.,-  • 


Thomas  Blanchard  and  Christopher  C.  Marsh  having,  as  per 
articles  of  agreement  dated  1st  instant,  entered  into  part 
nership,  advance  the  following  Effects  as  capital : — 

Thomas  Blanchard  advances — 

^  Cash, deposited $26,000  00 

^t/Note  No.  1,  as  per  Bill  Book    2,000  00 


C.  C.  Marsh  advances — 

tpCash, deposited $12,000  00 

Xote  No.  2,  as  per  Bill  Book 2,670  00 

Merchandise,  as  per  Invoice  Book,  folio  1 3,125  00 

Charles  Lawrence,  balance  of  account 140  00 


The  Firm  assumes  the  following  individual  Notes  in  favor 
of  sundry  persons,  outstanding,  as  per  Bill  Book,  viz. : — 

No.  1,  on  Thos.  Blanchard,  for $1,080  00 

No  2,  on  C.  C.  Marsh,  for 1,230  00 


Paid  Cash  to  W.  Wharton  for  Bill  of  Store  Fixtures . 


Sold  Merchandise  to  Paul  Harris,  at  sixty   days,  as  per 
Sales  Book,  folio  1, 

10  -1111 


Sold  Merchandise  to  William  Blakeley,  on  his  Note,  No. 

3,  at  thirty  days,  as  per  Sales  Book,  folio  1, 

12 


Sold  Merchandise  to  S.  H.  Lovell,  for  Cash,  as  per  Sales 
Book,  fol.  1,  amounting  to 


13 


Sold  Merchandise  to  Oliver  Otis  &  Co.,  as  per  Sales  Book, 

to  be  paid  for  on  19th  inst,  as  follows  : — 

Half  in  Cash,  and  half  in  Note  at  thirty  days, 

14 


Bought  Merchandise  of  Henry  Austin,  at  thirty  days,  as 
per  Invoice  Book,  Mo  1, 


28,000 


17,935 


45,935 


2,310 


00 


00 
00 


00 


300    On 


325 


500 


125 


2,000 


1,500 


00 


00 


00 


00 


00 


10 


13 


8 


NEW   YORK,   JANUARY    14,    1858. 


Bought  Merchandise  of  Rogers  &  Brothers  for  Cash,  as 
per  Invoice  Book,  folio  2, 

16   


iought  Merchandise  of  Rogers  &  Brothers,  on  our  Note, 
No.  3,  at  ninety  days,  as  per  Invoice  Book, 


Bought  of  Christopher  Bernard  an  invoice  of  Rice,  amount- 
ing to,  per  Invoice  Book,  $3,200  ;  and  paid  him  as  fol- 
lows : — 

In  Cash, amounting  to $2,000  00 

In  Merchandise,  as  per  Sales  Book, 1,200  00 


n 


Lent  Cash  to  James  Truman,  until  2 2d  inst. 

: 19  


Received  of  Oliver  Otis  &  Co.,  for  balance  of  account  as 
follows : — 

Their  Note,  No.  4,  at  thirty  days,  for $1,000  00 

In  Cash, amounting  to 1,000  00 


20^- 


Sold  Merchandise  for  Cash,  to  sundry  persons,  as  per  Sales 
Book 


21 


Received  of  Paul  Harris  his  Note,  No.  5,  at  sixty  days, 

dated  8th  inst.,  for  bill  of  that  date, 

22   1 


Received  Cash  of  James  Truman  in  full  for  loan  of  11th  inst. 


Delivered  to  Henry  Austin  our  Note,  No.  4,  at  thirty  days, 
for  bill  of  14th  inst 

24    


Sold  Merchandise  tins  day,  as  follows  : — 

To  S.  H.  Lovell,  on  account,  as  per  Sales  Book, .  .$250  00 

For  Cash  to  sundry  persons 160  00 


14 


800 


2,100 


3,200 
1,000 


00 


00 


00 


00 


2,000 

250 

325 
1,000 

1,500 
410 


00 

00 

00 
00 

00 
00 


NEW  YORK,   JANUARY    26,    1858. 


3 


Sold  Merchandise  as  follows,  as  per  Sales  Book  : — 

To  Oliver  Otis  &  Co., on  account, $200  00 

To  William  Blakeley, on  account, 200  00 

28    IZIZZZ 


Lent  Cask  to  James  Truman,  on  his  Note,  No.  6,  at  twelve 

months,  endorsed  by  Paul  Harris, $2,000  00 

Interest  for  one  year,  at  6  per  cent,  added, 121  00 


30 


Paid  Cash  for  our  Note,  No.  2,  in  favor  of  T.  P.  Cope  & 
Sons,  now  due, 


FEBR 


UA^El 


Y   2. 


Paid  Henry  Austin  for  our  Acceptance,  No.  1,  for  $1,080, 
as  follows : — 

In  Merchandise,  as  per  Sales  Book, $550  00 

"   Cash, amounting  to 525  32 

"  Discount,  26  days,  at  6  per  cent., 4  68 


Paid  Cash  for  sundry  expenses  of  Store  last  month,  as  per 
petty  Cash  Book, 

.   4     


Shipped  per  Brig  Franklin,  Kay,  and  consigned  to  Lock- 
hart  &  Arrott,  New  Orleans,  to  be  sold  for  our  account,  an 

Invoice  of  Hardware, $1,122  22 

Paid  Cash  for  Insurance  and  shipping  expenses, . . .  100  00 


6 


Sold  to  Christopher  Bernard,  on  his  Note,  No.  7,  at  six 

months,  a  lot  of  Hardware,  as  per  Sales  Book, 

.    9 


Received  of  William  Blakeley  in  full  for  balance  of  his  ac- 
count of  $200,  as  follows  : — 

Cash, amounting  to $100  00 

Lost  by  his  failure, 100  00 


75 


$   400 


2,121 


1,230 


0C 


00 


00 


1,080 


65 


00 


00 


Y 


1,822 


320 


22 


00 


200 


00 


NEW  YORK,  FEBRUARY  12,  1858. 


Bought  Merchandise  of  Haven  &  Smith,  as  per  Invoice 
Book,  $1,240  ;  delivered  to  them  in  payment  as  follows  : — 

Our  Draft  at  sight  on  Charles  Lawrence,  for  balance  of  his 

account, $140  00 

Oliver  Otis  &  Co's  Note,  No.  4,  due  21st  inst. 

for $1,000  00 

And  Cash  for  the  balance 100  00 


12 


"William  Blakeley's  Note,  No.  3,  is  due  and  not  paid . , 
13  


Received  per  Steamer  Washington,  Floyd,  consigned  to  us 
by  Walter  Howard,  London,  pursuant  to  our  order  and  for 
our  account,  an  Invoice  of  Dry  Goods,  amounting  to  £1,100 

sterling,  CD  $4  44, $4,888  89 

Signed  Bonds,  No.  5,  6,  and  7,  to  the  Custom- 
house for  duties  at  12  months, 1,222  22 

Paid  Cash  for  freight, 422  00 


$  1,240 


500 


Received  of  William  Blakeley,  for  balance  of  his  account 

of  $500,  as  follows  : — 

His  Draft  on  S.  H.  Lovell,  which  is  accepted  at  thirty  days, 

for $250  00 

Interest  added  for  33  days, -1  37 


Face  of  the  Acceptance,  No.  8, 251  37 

William  Blakeley  having  failed,  the  balance  is 

lost, 250  00 


16 


A. 


Accepted  Draft  at  twenty  days'  sight,  No.  8,  drawn  by 
Walter  Howard,  London,  in  favor  of  Lewis  Clapier, 
for 

~ IT     


Delivered  Merchandise  to  Henry  Austin,  in  payment  of  our 
Note,  No.  4,  due  16th  inst.,  as  per  Sales  Book, 


0C 


00 


6.533 


11 


501 


00 


4,444 


1,500 


44 


00 


76 


YORK,  FEBRUARY  20,  1858.        5 


nped  per  Steamer  Atlantic,  West,  consigned  to  Walter 
1  ward,  London,  pursuant  to  his  order,  dated  January  2, 
as  follows  : — 

120  tierces  Rice,  420  cwt.,  at  $3.50 $1,470  00 

280  barrels  Flour,  at    4.50 1,260  00 

Paid  Cash  for  shipping  expenses, 15  00 

Paid  Cash  to  Phoenix  Insurance  Co.,  for  3  per  ct. 

premium  on  $2,805,  and  policy  $1, 85  15 

Our  Commission  for  shipping $70  12 

Commission  for  Insuring,  at  |  per  cent.,     14  02        84  14 


20 


Bought  of  William  Evans,  on  account,  280  barrels  Flour, 
as  per  Invoice  Book, 

21    


Bartered  with   Christopher  Bernard   an  Invoice  of  Dry 
Goods  for  the  same  amount  in  Bice,  as  per  Invoice  Book. . . 


Exchanged  our  Note,  No.  9,  at  sixty  days,  with  Christopher 
Bernard,  for  his  Note,  No.  9,  for  same  amount  and  time, . . 

23   


Sold  Merchandise  to  James  Truman,  as  per  Sales  Book, 
$1,620  ;  received  payment  as  follows  : — 

His  Note,  No.  10,  at  sixty  days,  for $500  00 

In  Cash, 120  00 

The  balance  he  is  to  pay  on  the  26th  inst.,  by  an 
acceptance, 1,000  00 


24 


Sold  Merchandise  to  Strang,  Adriance,  &  Co.,  on  their 
Note,  No.  11,  at  ninety  days,  as  per  Sales  Book, 


Discounted,  at  the  Commercial  Bank,  Strang,  Adriance,  & 

Co's  Note,  No.  11,  for $2,000  00 

Discount  for  93  days,  at  6  per  cent., 31  00 

Cash  received, 


77 


$  2,974 


1,260 


1,530 


800 


1,620 


2,000 


1,969 


29 


00 


00 


00 


00 


00 


00 


0 


NEW  YORK,  FEBRUARY  25,  1858. 


Bought  the  Schooner  "Josephine,"  of  Capt.  C.  Davis,  at 

$5,000  ;  delivered  to  him  in  payment  as  follows  : — 

Our  Bill  of  Exchange,  at  sixty  days'  sight,  on  Walter 

Howard,  for  £500  sterling,  at  $4,44 $2,222  22 

Exchange  allowed  us,  at  8  per  cent  prem lit  78 

And  Cash  for  the  balance, 2,600  00 

26    ■ 


Received  of  James  Truman  his  Draft,  at  sight,  on  William 
Evans,  which  is  accepted  and  passed  to  account  for 


Paid  Cash  for  Bills  of  Rigging  and  repairs  for  our  Schooner 
Josephine,  amounting  to 

j 27    


Shipped  per  Schooner  Josephine,  Whipple,  consigned  to  H. 
B.  Walker  &  Co.,  Port  au  Prince,  to  be  sold  for  our  account, 
as  follows : — 

An  Invoice  of  Domestic  Goods,  received  of  Irvine  Fisher, 
in  exchange  for  same  amount  in  Imported  Goods .  $1,200  00 

200  boxes  Soap,  4,000  lbs., $  300  00 

200      "      Sperm  Candles, 1,890  00 

which  we  have  bought  of  J.  R.  DaT  2,190  00 

lett  &  Co.,  on  our  Note,  No.  10,  at  sixty  days. 
144  boxes  Cheese,  bought  of  Charles  Lawrence 

on  account, 288  00 

Estimated  amount  of  Ereight  on  the  above,  per 

our  Schooner  Josephine, 230  00 

1 28 


Insured,  at  the  Phoenix  Insurance  office,  our  Shipment  to 
Port  au  Prince  of  27th  inst.:  passed  our  Note,  No.  11,  at  90 
days,  for  2  per  cent.  prem.  on  $4,028,  and  policy,  .$  81  56 
Paid  Cash  for  Shipping  expenses, 120  00 


Eifected  Insurance  with  the  Atlantic  Insurance  Co.,  on  our 
Schooner  Josephine,  for  $5,000,  at  \  per  cent,  prem.,  which 
we  have  paid  in  Cash  (policy  $1,) 


7S 


$  5,000 


1,000 


155 


00 


00 


00 


3,908 


00 


201 


26 


56 


00 


NEW  YORK,  MARCH   2,  1858 


Sold  Merchandise  as  per  Sales  Book,  as  follows  : — 

To  Oliver  Otis  &  Co.,  on  account, $500  00 

k) 

To  William  Blakeley,  per  order  of  Charles  Law- 

$      188 

00 

ft 

Paid  Cash  for  sundry  expenses  of  Store,  as  per  petty  Cash 

45 

no 

o                                        -v- 

3 

Received  per  Brig  Clio,  Kirk,  consigned  to  us  by  Joseph 

6 

De  Nones,  Cadiz,  to  be  sold  for  his  account,  an  Invoice  of 

Fruit,  amounting  to  $2,100. 

Paid  Cash  for  Freight  and  Duties, 

460 

00 

6 

Sold  for  Cash,  as  per  Sales  Book,  as  follows  : — 

456 

00 

'     4 

Sold  of  De  Nones'  Consignment,  as  per  Sales  Book,  as  fol- 

lows : — 

To  Charles  Lawrence,  on  account — viz, 

6 

25  boxes  Oranges at  $3 $  75  00 

200  jars  Olives, at       .50, 100  00  175  00 

To  Thomas  Milton,  for  Cash — 

100  boxes  Oranges,  at  $3 300  00 

475 

00 

" 

Received  Cash  for  Oliver  Otis  &  Co's  Acceptance,  No.  2, 

6 

2,670 

00 

0 

Received  of  Oliver  Otis  &  Co.,  their  Note,  No  12,  at  sixty 

6 

Interest  for  63  days  added,  at  6  per  cent., 7  35 

707 

35 

..  _    ....             >7 

l 

Paid  Cash  to  sundry  persons  for  damages  found  in  Sales  for 

6 

account  of  J.  De  Nones,  of  3d  and  4th  inst $45  00 

Made  allowance  to  Charles  Lawrence,  on  account, 

on  same  sales, 10  00 

55  ,  00 

i 

i 

79 


NEW  YORK,  MARCH   9,  1858. 


Sold  to  S.  H.  Lovell  on  account,  as  per  Sales  Book,  as  fol- 
lows : — 

20  tierces  Rice,  amounting  to $245  00 

50  boxes  of  De  Nones'  Fruit,  at  $3 150  00 


Paid  Cash  for  our  acceptance,  No.  8,  in  favor  of  Lewis 
Clapier,  being  Walter  Howard's  Draft  for 


Received  Cash  of  S.  H.  Lovell,  for  balance  of  account  of 
January  24th, 

110  X 


Sold  per  L.  M.  Hoffman  &  Co.,  for  Cash,  De  Nones'  Con- 
signment, as  follows : — 

150  boxes  Lemons,    at  $5 $  150  00 

110     "      Oranges,   at    3.80 418  00 

220  jars     Olives, at     .50 110  00 


1,278  00 

Auctioneer's  Commission,  at  3|  per  cent., 44  73 

Net  amount  received, 


Received  to  our  account  the  remainder  of  De  Nones'  Invoice 
of  Fruit,  being  4,000  jars  Olives,  at  market  price — $  .50 . . 

12    


Received  Cash  of  Paul  Harris,  as  follows  : — 

For  his  Note,  No.  5,  now  due, $325  00 

For  1,000  jars  Olives,  sold  him  at  $  .52$ 525  00 


14 


Rendered  to  Joseph  De  Nones,  Cadiz,  account-sales  of  In- 
voice of  Fruit,  received  per  Brig  Clio,  from  which  we  obtain 

the  following  : —  Charges  posted, TJA  i . 

Our  Commission  on  total  Sales,  $4,314.27,  at  5  per  cent. 

is $  215  71 

Storage,  Advertising,  and  Labor, 52  24 

Net  proceeds,  due  May  25/58 3,531  32 


80 


$     395 


4,444 


250 


1,233 


2,000 


850 


00 


41 


00 


27 


00 


00 


3,799 


27 


NEW  YORK,   MARCH  16,  1858. 


Received  from  Lockhart  and  Arrott,  New  Orleans,  account- 
sales  of  our  shipment  to  them  of  Feb.  4  ;  Net  proceeds, . . 


Received  Cash  for  S.  H.  Lovell's  Acceptance,  No.  8,  being 
William  Blakeley's  Draft 

18    


Received  Cash  of  Paul  Harris,  to  be  applied  for  him  in  buy- 
ing Merchandise  on  joint  account  with  us,  as  per  agreement, 

20    


Bought  of  Bunker  and  Starr  for  Cash,  in  joint  account  with 
Paul  Harris,  800  barrels  Flour,  as  per  Invoice  Book,  $4,000, 

Of  which  Paul  Harris's  half  is $2,000  00 

Our  half  is 2,000  00 

21 IZZIZZZ 


Received  of  Paul  Harris,  to  be  sold  in  joint  account,  500 
barrels  Flour,  at  $4.75,  amounting,  per  Invoice  Book,  to 
$2,375  ;  of  which  our  half  is 


23 


Sold  to  E.  K.  Collins  &  Co.  500  barrels  Flour  in  joint  ac- 
count with  P.  Harris,  at  $6, 

Received  payment  as  follows  : — 

Our  Note,  No.  3,  in  favor  of  Rogers  and  Brothers,  due 

April  19th,  for $2,100  00 

Interest  allowed  us  for  26  days,  at  6  per  cent.. .         9  10 


2,090  90 
Received  the  balance  in  Cash, 909  10 


25 


Paid  Cash  to  C.  C.  Marsh,  on  account, . 
26    


Bought  of  Brown,  Brothers  &  Co.  their  Bill  of  Exchange 
on  Brown,  Shipley  &  Co.,  Liverpool,  at  twenty  days'  sight, 

for  £1,000  sterling,  ....  (No.  13.) $4,444  44 

Exchange,  at  8  per  cent.  prem.  on  $4,444  44, . .      355  56 


(Forward,) 


2,020 


251 


2,000 


00 


37 


00 


4,000 


1,187 


3,000 


00 


50 


00 


3,000 


300 


00 


00 


4,800  i  0C 


11 


81 


'« 


10 


NEW  YORK,   MARCH   26,  1858. 


(Brought,) 
Delivered  to  them  in  payment — 
400  barrels  Flour  in  joint  account  with  Paul  Harris,  at 

$6, $2,400  00 

And  Cash  for  the  balance, 2,400  00 


21 


Sold  to  Oliver  Otis  &  Co.  200  barrels  Flour  in  joint  ac- 
count with  P.  Harris,  at  $6,  as  per  Sales  Book, 

Received  of  them  in  payment — 

Their  Draft  at  sight,  on  William  Evans,  which  is  accepted 

in  account,  for $260  00 

Their  Note,  No.  14,  at  60  days,  for 500  00 

And  Cash  for  the  balance, 440  00 


28 


Bartered  with  Haven  &  Smith  the  balance  of  Flour  in 
joint  account  with  Paul  Harris — 200  barrels,  at  $6.25, . . . 
Received  of  them  in  exchange — 

227  barrels  Mackerel,  at  $5.50, $1,248  50 

And  Cash, 1  50 


30 


Rendered  to  Paul  Harris  account-sales  of  Flour  in  joint  ac- 
count,  showing  the  following  result : — 
Our  Commission  on  total  Sales,  $7,850,  at  2^  per  cent., . . . 

$  196  25 

Storage  on  1300  barrels,  1  mo.,  at  3  cts., 39  00 

Net  proceeds,  $7,614.75 — of  which  P.  Harris's 

half  is  (due  May  3/58,) 3,807  37 

Our  half  net  proceeds  is $3,807  38 

Our  half  cost  is 3,187  50 

Our  net  gain  is 619  88 


$  4,800 
1,200 

1,200 

1,250 
1,250 


00 


00 


00 


00 


00 


4,662    50 


82 


NEW  YORK,  APRIL    1,  1858. 


11 


Paid  Cash  as  follows  : — 

For  sundry  expenses  of  Store  last  month,  as  per  petty  Cash 

Book, $162  00 

To  George  Loder,  for  three  months'  rent  of  Ware- 
house,      300  00 


Received  per  Steamer  Crescent  City,  from  Lockhart  &  Ar- 
rott,  New  Orleans,  pursuant  to  our  order,  for  amt.  of  pro- 
ceeds of  Shipment  to  them  4th  Feb.,  Invoice  of  230  bales 

Cotton,  amounting  to $2,020  00 

Paid  Cash  for  Freight  and  expenses, 300  00 


Received  of  Irvine  Fisher,  to  be  sold  for  his  account,  In- 
voice of  300  bags  of  Laguayra  Coffee,  amounting  to 

6     


Sold  Fisher's  Coffee  as  follows  : — 

To  S.  H.  Lovell,  at  4  months,  15  bags,  as  per  Sales  Book, 

$1,350  00 

To  Oliver  Otis  &  Co.,  on  account,  50  bags,  as  per 

Sales  Book, 810  00 


Renewed  C.  Bernard's  Note,  No.  1,  for  $2,000,  now  due. 
Received  his  Note,  No.  15,  for  same  amount,  and  Cash  for 
63  days'  interest, 


Sold  to  H.  Burrell  &  Co.,  for  Cash,  100  bags  Fisher's  Cof- 
fee, as  per  Sales  Book,  $1,440  ;  which  amount  we  have 

paid  over  to  Irvine  Fisher  on  account, 

— 10   


Paid  Cash  to  sundry  persons  for  damages  found  in  Sales  of 
Fruit  on  account  of  Joseph  De  Nones,  amounting  to  $22  00 
Allowed  to  ourselves  for  defects,  &c,  in  4,000  jars 
Olives  taken  to  our  account  March  10, 40  00 


83 


462 


00 


2,320 


3,3*15 


00 


00 


2,160 


00 


21 


1,440 


00 


00 


62 


00 


% 


12 


NEW  YORK,  APRIL  11,  1858 


Received  of  S.  H.  Lovell,  for  bill  of  6th  inst.,  his  Note,  No. 

16,  at  4  months,  for 

Discounted  the  above  Note  for  Irvine  Fisher,  and  paid  him 

in  Cash, $1,322  33 

In  Discount,  allowed  us, 27  67 


13 


Shipped  per  Brig  Pilot,  Milton,  and  consigned  to  Joseph 
Eaton,  Boston,  to  be  sold  for  our  account,  as  follows  : — 

115  bales  Louisiana  Cotton, $2,160  00 

1,000  jars  Olives, at   .50, 500  00 

50  bags  Coffee  of  Fisher's  Consignment  taken 

to  our  account, 720  00 

Paid  Cash  for  Insurance  and  Shipping  expenses,      120  00 


14 


Received  of  Oliver  Otis  &  Co.,  for  sale  of  6th  inst.,  as  fol- 
lows : — 
Their  order  at  sight  on  Irvine  Fisher,  which  is  accepted  in 

account,  for $310  00 

Cash amounting:  to 500  00 


15 


Delivered  to  Thomas  Blanchard,  on  account — 

Cash, amounting  to $500  00 

3  bags  Fisher's  Coffee,  per  Sales  Book, 43  20 


16 


Sold  to  Paul  Harris,  for  Cash,  the  balance  of  Fisher's  Cof- 
fee— 22  bags,  as  per  Sales  Book, 


Rendered  to  Irvine  Fisher  account  sales  of  his  consignment 

of  Coffee,  showing  the  following  result : — 

Total  sales,  $4,680  ;  on  which  our  Commission,  'at  2|  per 

cent.,  is $  117  00 

Storage,  Advertising,  and  Labor, IS  00 

Net  proceeds, due  April  20/58 4,545  00 


84 


1,350 
1,350 


0G 


00 


3,500 


00 


810 


00 


543 


316 


20 


80 


4,680 


00 


NEW  YORK,  APRIL    18,  1858 


13 


10 


10 


10 


10 


10 


Sold  to  Thomas  Owen  &  Son,  150  tierces  Rice,  as  per  SaLs 

Book, 

Received  of  them  in  payment  as  follows  : — 

Irvine  Fisher's  Note  to  them,  No.  IT,  for $1,200  00 

And  Cash, amounting  to 631  50 


Delivered  to  Irvine  Fisher,  for  balance  of  his  account,  as 
follows : — 

His  Note,  No  IT,  due  20th  inst., $1,200  00 

And  Cash, amounting  to 245  00 


20 


Bought  at  auction  of  Wilmerdings  &  Mount,  in  joint  ac- 
count with  Henry  Austin,  500  doz.  Madeira  Wine,  at  $10 . 
Delivered  in  payment,  as  follows : — 

Our  Note,  No.  12,  at  4  months,  for $2,033  33 

C.  Bernard's  Note,  No.  9,  for $800  00 

J.  Truman's  Note,  No.  10,  for  . . . ...  500  00     1,300  00 

Amount  of  our  §  interest  in  the  Wine, ....?...  3,333  33 
Henry  Austin  paid  W.  &  M.  for  his  |,  amtg.  to  1,666  6T 


21  

Paid  Cash  as  follows : — 

For  12  Opera  Tickets, $120  00 


Uperi 

■on  nt 


For  Disc4Pht  on  $475  uncurrent  money,  If  per  ct.       8  31 


24 


Sold  Brown  Brothers  &  Co.'s  Bill  of  Exchange,  No.  13, 
on  Brown,  Shipley,  &  Co.,  Liverpool,  drawn  for  .£1,000 

sterling, $4,444  44 

Exchange  at  8$  percent,  premium. 37 T  T8  $4822  22 

Brokerage,  \  per  cent., 12  06 

Received  in  paymenjPas  follows  : — 

Our  Note,  No.  10,  in  favor  of  J.  R.  Dallett  &  Co.,  due 

May  1st,  for $2,190  00 

Interest  for  T  days  allowed  us,,  -, 2  55 


Allowed  for  the  Note, 2,187  45 

Cash  for  the  balance, 2,622  Tl 


85 


1,837 
1,887 


50 


50 


1,445 


5,000 


00 


00 


5,000 


128 


00 


31 


4.810 


16 


4,810 


16 


14 


NEW  YORK,  APRIL   24,  1858. 


Renewed  our  Note,  No.  9,  in  favor  of  C.  Bernard,  for 
$800,  by  our  NoteJtfo  13,  for  same  amount  and  time,  and 
paid  Cash  for  63  days'  interest  on  new  Note, 


Bought  at  auction*  of  Gerarck  &  Betts,  50  chesra  of  Tea, 
amounting  tq  $4^5X.  and  transferred  the  same  to  J.  Per- 
cival  for  3    pfer  cent,  advance,  which  is  received  in  Cash, 


Received  in  Cash  for  proceeds  of  Opera  Tickets,  bought  on 
21st  inst., 


Received  Cash  enclosed  in  an  anonymous  letter  addressed 

to  us, 


28 


Received  per  Schooner  Josephine,  Whipple,  from  H.  B. 
Walker  &  Co.,  Port  au  Prince,  an  invoice  of  37  tons  St. 
Domingo  Hides,  being  net  proceeds  of  our  Consignment 
to  them  of  Feb.  28,  account  sales  now  received,  amounting 

to $6,000  00 

Value  of  the  Freight  per  our  Schooner, 200  00 


Received  per  Schooner  Josephine,  Whipple,  consigned  toflK 
by  H.  B.  Walker  &  Co.,  Port  au  Prince,  to  be  sold  foj^their 
account,  an  invoice  of  20,000  feet  Mahogany,  amounting  to 
$2,400  ;  which  we  have  taken  to  our  account  at  the  mar- 
ket price,  15  cts.  per  ft $3,000  00 

Charges : — 

Freight  per  our  Schooner, $125  00 

Expenses  paid  in  Cash, 15  00 

Our  Commission  on  $3,000,  at  5  per  ct.  150  00     350  00 

Net  proceeds  due  H.  B.  Walker  &  Co., 

29    


Received  Cash  of  Capt.  Whipple  for  freight  per  Schooner 
Josephine,  on  her  voyage  to  Port  au  Prince, 


86 


Ul 


1,700 


530 


40 


75 


00 


00 


A 

6,200 


00 


2,650 


500 


00 


00 


NEW  YOKE,  APRIL    30,  1858 


15 


11 


11 


11 


Paid  Cash  for  Sundry  expenses  of  Store  this  month,  as  per 
petty  Cash  Book, 


Received  Cash  of  Harmony's  Nephews  &  Co.,  for  amount 
of  Draft  on  them  at  sight,  remitted  to  us  by  Joseph  Ruiz, 

Puerto  Principe,  for  collection, '.$5,000  00 

Our  Commission,  at  \  per  cent., 12  50 


Bought  for  Cash  of  A.  Belmont,  his  Bill  of  Exchange,  No. 
18,  at  sixty  days'  sight,  on  Rothschild  &  Co.,  Paris,  per 
order  of  H.  B.  Walker  &  Co.,  Port  au  Prince,  to  whom  we 
have  remitted  the  same : 
Bill  for  14,062.73  francs,  exchange  at   fr.  5.32  per  dollar, 

amounting  to $2,643  37 

Our  Commission  on  $2,650,  at  \  per  cent., 6  63 


d,. 

sa 


11 


11 


Bought  for  Cash  of  B.  Blanco,  his  Draft,  No.  19,  at  15 
ays'  sight,  on  Francia  &  Co.,  Cadiz,  and  remitted  the 
me  to  Joseph  De  Nones,  Cadiz,  for  balance  of  account 
clue  him  in  Cadiz— $3,469.32. 

Face  of  the  Draft, $3,454  80 

Exchange, vat  1|  per  cent  discount, 51  82 

Paid  for  the  Draft, 


Interest  for  25  days  in  our  favor  on  $3,469.32  due  J.  De 
Nones  May  25/58., 


Bought  for  Cash  of  Moses  Taylor  &  Co.,  their  Bill  of  Ex- 
change, No.  20,  at  30  days'  sight,  on  Drake  Brothers  & 
Co.,  Havana,  on  account  of  Joseph  Ruiz,  Puerto  Principe, 
to  whom  we  have  remitted  the  same  : 

Face  of  the  Bill, $5,050  63 

Exchange,  at  \\  per  ct.  discount,  favor  J.  Ruiz, .       75  75 


Paid  for  the  Bill, 4,974  88 

Our  Commission  on  $5,050.63.  at  \  per  cent.,. . .       12  62 


87 


200 


00 


4,987 


50 


2,650 


00 


3,402 
14 


98 
52 


4,987 


50 


1G 


NEW  YORK,  APRIL  30,  1858. 


Bought  for  Cash  of  Jacob  Little  &  Co. — 

10,500  Spanish  Dollars, $10,500  00 

At  Premium  of  £  per  cent., 78  75 


Balances  of  Interest  ill  favor  of  the  following,  as  per  ac- 
counts current  rendered  to  this  date  : — 

Thomas  Blanchard,  partner, $493  66 

C.  C.  Marsh,  "       297  69 


Balance  of  Interest  in  our  favor,  as  per  account  current 
rendered  to  C.  Lawrence,  to  this  date, 


Balance  of  Interest  in  favor  of  Paul  Harris,  as  per  account 
current  rendered  him  to  this  date, 


CLOSING    ENTRIES. 

Profit  and  Loss  account  must  be  debited  for  the  following 
balances,  being  losses,  as  per  Balance  Sheet : — 

Store  Fixtures,  loss, $  30  00 

Store  Expenses,  loss, 662  76 

Discount  and  Interest,      loss, 612  53 


Profit  and  Loss  account  must  be  credited  for  the  following 
balances,  being  gains  as  per  Balance  Sheet : — 

Merchandise,                     gain  on  sales, $  3,562  86 

Schooner  Josephine,          gain, 874  00 

Commission,                       gain, 782  79 

Exchange,                         gain, 164  76 

Shipment  to  N.  Orleans,  gain, 197  78 

Shipm't  to  Port  au  Prince,  gain, 1,890  44 


The  net  gain  accruing  from  the  business  the  last  four  mos. 
as  appears  by  the  Profit  and  Loss  account,  is  $8,547.22 — 

Of  which  Thomas  Blanchard's  half  is $4,273  61 

Of  which  C.  C.  Marsh's  half  is 4,273  61 


$10,578 


75 


791 


35 


31 


67 


1,305 


29 


7,472 


63 


8,547 


22 


NEW  YORK,  APRIL    30,  1858. 


Balances  of  Property  and  Debts  in  our  favor,  as  per  Bal- 
ance Sheet,  as  follows  : — 
Cash,                          balance  on  hand, $26,214  07 

Store  Fixtures           valued  at 210  00 

$61,245 
9,125 

12 

Schooner  Josephine,  first  cost, 5,000  00 

Charles  Lawrence,     balance  in  our  favor,  ....        167  31 

S.  H.  Lovell,             balance  in  our  favor, 395  00 

Walter  Howard,        balance  in  our  favor, 307  62 

Companv  2  Merchandise,  our  \  on  hand, 3,333  33 

1 
68 

<< 

12 

Balances  in  favor  of  Sundries,  as  per  Balance  Sheet : — 

31 

12 

The  Balance  account  of  April  30,  1858,  shows  the  amount 
of  our  net  capital — $52,120.37  ;  of  which — 
Thomas   Blanchard's  share,   as   appears  by  his   account 
is $  31,144  07 

52,120 

^ 

C.  C.  Marsh's  share,  as  appears  by  his  account, 

is $20,976  30 

37 

MAY    10. 

Amount  of  Salaries  due  the  following  Clerks  in  our  em- 

13 

ployment  : — 

C.  J.  Martin,  from  January  5  to  5th  inst., $300  00 

500 

00 

13 

lo   

Delivered  to  Paul  Harris  our  Note,  No.  16,  at  three  mos., 
dated  1st  inst.,  for  part  of  balance  of  account, .  .$  1988  20 

2,019 

01 

12                                              89 

* 


18 


NEW  YORK,   MAY  16,  1858. 


Bought  of  Strang,  Adriance,  &  Co.,  50  Shares  Erie  Rail- 
road Stock,  at  $80  per  share, $  4,000  00 

Delivered  to  them  in  payment,  our  Draft  on  Joseph  Eaton 

&  Co.,  Boston,  at  three  days'  sight,  for 4,020  10 

Exchange  allowed,  at  J  per  cent,  discount. ...         20  10 


18 


Received  from  Joseph  Eaton  &  Co.,  Boston,  account  sales 
of  our  Consignment  to  them  of  April  13th  ;  Net  proceeds. 


Received  from  Joseph  Eaton  &  Co.,  Boston,  account  cur- 
rent showing  a  balance  of  Interest  iu  their  favor 

of $  25  00 

Also,  their  Draft,  No.  21,  at  60  days,  on  Eagle  & 
Hazard,  accepted,  for  balance  due  us 554  90 

20    

Delivered  our  Note,  No.  17,  at  seven  months,  to  the  At- 
lantic Mutual  Insurance  Co.,  for  2  per  cent,  premium  on 
$20,000  in  open  policy 

23    

Shipped  per  Steamer  Panama,  Bailey,  consigned  to  Sim- 
mons, Hutchinson,  &  Co.,  San  Francisco,  to  be  sold  for  the 
joint  account  of  Henry  Austin  and  ourselves,  as  follows  : — 

100  boxes  refined  Sugar $1,150  00 

80  M.  Havana  Segars 1,440  00 

10,500  Spanish  Dollars $10,500  00 

At  1%  premium 105  00     10,005  00 

Paid  Cash  for  Shipping  expenses 125  00 

Insured  at  the  Atlantic  Mutual  Insurance  Co., 
$14,654,  at  2  per  cent,  premium,  entered  on  our 
Policy 293  04 

Of  which  our  half  is 6,806  52 

Of  which  Henry  Austin's  half  is 6,806  52 


90 


$  4,000 


4,600 


00 


00 


579 


90 


401 


25 


13,613 


13,613 


04 


04 


NEW  YORK,      MAY      30,  185 

Bought  Merchandise  during  this  month,  as  per  Invoice 
Book,  as  follows  : — 

On  our  Notes,  viz. : — 

No.  14  to  T.  Owen  &  Son, 4th,  $300  00 

"    15  to  "  "    6th,    200  00 

"    18  to  Trujillo  &  Barreiras,  .  .25th,    320  00 

"    19  to  Harmony's  Nephews  & 

Co., 26th,    630  00 

"    20  to   Spofford,    Tileston,    & 

Co., 28th,    210  00  1,120  00 

On  Account — 

Of  Henry  Austin, 5th,  $200  00 

"       16th,     100  00  $300  00 

Of  James  Truman, 10th, . . .  .777"  212  00 

Of  Edward  G.  Fail  &  Co., 13th, 315  00 

Of  William  Evans, 18th,     1 10  00 

"     25th,     115  00 

"     30th,     135  00     420  00 

Of  Barclay  &  Livingston, 22d  550  00 

<« 

Sold  Merchandise  during  this  month,  as  per  Sales  Book, 

as  follows  : — 

For  Notes,  viz  : — 

No.  22,  on  A.  G.  Beck, 15th,  $352  00 

"     23,  on  W.  F.  Mott,  Jr., 20th,   415  00 

"     24,  on  A.  Aranguran, 21th,    611  00  1,318  00 

On  Account — 

To  S.  H.  Lovell, 12th,  $310  00 

"     "  "     11th,    190  00  $500  00 

To  Paul  Harris, 18th,  $150  00 

"      "         "      28th,    150  00 

"      "        "      30th,   255  00  $555  00 

To  Oliver  Otis  &  Co., 20th, 562  50 

"  nenry  Austin, 22d, 331  50 

"  Barclay  &  Livingston, 29th, 115  00 

91 


8. 


13 


14 


3,511 


00 


3,508 


00 


30 


NEW  YORK,  MAY  30,  1858. 


Received  Cash  during  this  month,  as  per  Cash  Book,  as 

follows  : — 

For  Merchandise,  amount  of  cash  sales,    this 

month, $1,266  00 

For  Notes  due  and  discounted  this  month,  viz. : — 

No.   12, for..  $707  35 

"     14, for..    500  00  1,207  35 

For  Discount  and  Interest,  amount, 10  50 

Of  Oliver  Otis  &  Co., 23d,  $200  00 

"       "  "       30th,  150  00      350  00 

Of  Henry  Austin, 28th, 150  00 

Of  Charles  Lawrence, 28th, 167  31 

Of  S.  H.  Lovell, 30th, 300  00 


Paid  Cash  during  this  month,  as  per  Cash  Book,  as  fol- 
lows : — 

For  Merchandise,  cash  purchases  this  month, . . .   $610  50 
For  our  Notes,  due  this  month,  viz.  : — 

No.  14, for  $300  00 

"15, for    200  00      500  00 

For  Discount  and  Interest,  amount, 12  75 

For  Store  Expenses, amount, 75  95 

To  Thomas  Blanchard, 15th,  $  98  23 

30th,    100J0  198  23 

To  Paul  Harris,  his  Draft  at  sight — 

5th,  for  $2,500  00 
"      "         "       10th, 500  00  3,000  00 

To  C.  C.  Marsh, 15th, ....    200  00 

"      "         "        30th, 100  00     300  00 

To  William  Evans, 12th, 200  00 

"  C.  J.  Martin, 16th, 150  00 

"  John  Sims, 16th, 100  00 


An  error  occurred  in  a  journal  entry  of  April  30  (page 
12),  in  which  Paul  Harris  was  charged  for  a  balance  of 
interest  of  $6.67  when  he  should  have  been  credited, 


92 


$  3,451 


16 


5,147 


13 


43 


34 


93 


NOTE. 

In  this  book  consists  the  science  of  book-keeping — its  entries  are  composed 
from  those  of  the  Day  Book,  and  embrace  only  our  debtors  and  creditors,  ar- 
ranged to  facilitate  our  posting  or  transferring  them  to  the  Leger.  This  method, 
having  the  Day  Book  and  Journal  entries  separate,  relieves  the  book-keeper  of 
a  double  task  ;  for  when  they  are  united,  he  has  not  only  to  point  out  the  debt- 
ors and  creditors  of  a  transaction,  but  has  also,  and  at  the  same  moment,  to 
state  all  the  circumstances,  which  must  of  necessity  be  done  in  broken  sentences. 
But  by  this  plan  or  arrangement  the  book-keeper  may  give  a  pure  and  simple 
relation  of  any  transaction  and  leave  the  debtors  and  creditors  for  a  separate 
entry  and  future  consideration. 

In  examining  an  account  in  the  Leger,  we  need  not  go  through  this  book  to 
the  Day  Book,  but  we  may  refer,  for  any  explanations,  from  the  Leger  (by  the 
dates),  directly  to  the  Day  Book  entries. 

Another  Form  of  Journal  will  be  found  at  the  end  of  this. 

. 


94 


NEW   YORK,    JANUARY    5,    1858. 


2 
5 
4 

10 

1 
1 

6 
1 

1 

6 
2 

10 
4 

5 

4 

2 
4 

Sundries 

Cash 

Dr. 

To  Sundries. 
$38,000  00 

$45,935 
45,935 

2,310 

300 

325 

500 

125 

2,000 

1,500 

800 

2,100 

Charles  Lawrence 

4,670  00 

3,125  00 

140  00 

00 

To  Thomas  Blan 
"  C.  C.  Marsh . 

C 

chard. . . 

28,000  00 

i 

17,935  00 

00 

Sundries 

Thomas  Blanchard 

Dr. 

To  Bills  Payable. 
$1,080  00 

C.  C,  Marsh 

7 

1,230  00 

00 

Store  Fixtures 

To  Cash 

Dr. 

00 

Q 

Paul  Harris 

To  Merchandise . 

Dr. 

00 

l  ft 

Bills  Receivable 

To  Merchandise. 

Dr. 

00 

19! 

Cash 

To  Merchandise . 

Dr. 

-4v 

*   .  • 

00 

I 

!    4 

Oliver  Otis  &  Co. 

To  Merchandise . 

Dr. 

if 

00 

i 

ii 

i± 

111 

Merchandise 

To  Henry  Austin 

Dr. 

it 

00 

4 

2 

4 

6 

Merchandise 

To  Cash 

Dr. 

00 

ifl 

Merchandise 

To  Bills  Payable 

Dr. 

00 

95 


%         NEW   YOEK,   JANUARY    16,    1858. 


12 
2 


11 
5 


5 

10 


2 
12 


11 
6 


4 

12 

2 


4 
11 
13 


Merchandise  Dr.  To  Sundries. 

To  Cash. .' $2000,  00 

"  Merchandise, 1,200  00 

1? 

Dr. 


James  Truman 

To  Cash 


19 


Sundries  Dr.        To  Oliver  Otis  &  Co. 

Bills  Receivable $1,000  00 

Cash 1,000  0y 


Cash 


20 
Dr. 


To  Merchandise . 


Bills  Receivable 

To  Paul  Harris . 


21 
Dr. 


Cash 


22 
Dr. 


To  James  Truman . 


Henry  Austin  Dr. 

To  Bills  Payable.... 


24 


Sundries  Dr.  To  Merchandise. 

S.  H.  Lovell ! $250  00 

Cash 160  00 


26 


Sundries  Dr.  To  Merchandise. 

Oliver  Otis  &  Co $200  00 

William  Blakeley 200  00 


28 


Bills  Receivable  Dr.  To  Sundries. 

To  Cash $2,000  00 

"    Interest 121  00 


96 


$  3,200 


1,000 


2,000 


250 


325 


1,000 


1,500 


410 


400 


2,121 


00 


00 


00 


00 


00 


00 


00 


00 


00 


00 


N 


EW  YOUK.  JANUARY    30,  1858.  3 


6 
2 

6 
4 
2 

7 

8 
2 

16 
4 

2 

5 
4 

13 
2 

8 

4 

10 

5 

2 

13 
5 

4 

13 
6 
2 

Bills  Payable                       Dr. 
*To  Cash 

$   1,230 

1,080 
65 

1,822 
320 

1 

200 

1,240 
500 

6,533 

00 

FEBRUARY    2. 

Bills  Payable                      Dr. 

11  Cash 

To  Sundries. 

$550  00 

525  32 

4  68 

00 

• 
Store  Expenses,                   Dr. 

4 

00 

Shipment  to  New  Orleans   Dr. 
To  Merchandise, 

To  Sundries. 
$1,722  22 

"    Cash, 

6 

100  00 

22 

Bills  Receivable                    Dr. 

To  Merchandise, 

00 

9 

Sundries,                              Dr. 
Cash, 

To  William  Blakeley. 
$100  00 

Profit  and  Loss, 

100  00 

00 

- 12    - 

Merchandise                         Dr. 
To  Charles  Lawrence,. 

"W ;;- 

To  Sundries. 

$  140  00 

1,000  00 

100  00 

00 

William  Blakeley,                 Dr. 

To  Bills  Receivable, 

00 

13 

Merchandise                          Dr. 
To  Walter  Howard, .  . . 

To  Sundries. 
$4,888  89 

"  Bills  Payable, 

"  Cash, 

1,222  22 

422  00 

11 

13                                     97 

w 


4       NEW   YORK,    FEBRUARY   13,    1858. 


13 

T 


13 
6 


13 

4 
2 


4 
14 


4 
5 

2 
12 


Sundries  Dr.  To  Sundries. 

Bills  Receivable, $251  37 

Profits  and  Loss, 250  00 


To  William  Blakeley 500  00 

"   Interest 1  3? 


Walter  Howard 

To  Bills  Payable 


16 
Dr. 


Bills  Payable 

To  Merchandise. 


n 

Dr. 


20 


Walter  Howard  Dr.  To  Sundries. 

To  Merchandise, $2,130  00 

"  Cash, 160  15 

"  Commission, 84  14 


Merchandise  Dr. 

To  William  Evans 


Merchandise 

ToMerchandise 


21 

Dr. 


Bills  Receivable  Dr. 

To  Bills  Payable . . . 


23 


Sundries  Dr.  To  Merchandise. 

Bills  Receivable, $    500  00 

Cash, 120  00 

James  Truman, 1,000  00 


Bills  Receivable 

To  Merchandise,. 


24 
Dr. 


Sundries  Dr.  To  Bills  Receivable. 

Cash, $1,969  00 

Discount, 3100 


98 


$  501 
501 

4,444 

1,500 

2,914 
1,260 
1,530 

800 


1,620 


2,000 


2,000 


31 
31 

44 
00 


29 


00 


00 


00 


00 


00 


00 


NEW   YORK,    FEBRUARY    35,    1858.       5 


1 

13 
9 
2 


14 
12 


16 
4 
0 

10 

7 


16 
6 

2 


4 
11 
10 


n 

2 


Schooner  Josephine  Dr.  To  Sundries. 

To  Walter  Howard $2,222  22 

"   Exchange 177  18 

"  Cash 2,600  00 


26 


William  Evans  Dr. 

To  James  Truman 


Schooner  Josephine 
To  Cash  . . 


Dr. 


27 


Shipment  to  Port  au  Prince  Dr.  To  Sundries. 

To  Merchandise $1,200  00 

"  Bills  Payable 2,190  00 

"  Charles  Lawrence 288  00 

"  Schooner  Josephine 230  00 


28 

Shipment  to  Port  au  Prince  Dr.  To  Sundries. 

To  Bills  Payable $  81  56 

"  Cash 120  00 


Schooner  Josephine 
To  Cash . . 


Dr. 


MARCH    2. 


Sundries  Dr.  To  Merchandise. 

Oliver  Otis  &  Co $500  00 

Charles  Lawrence 288  00 


Store  Expenses 

To  Cash 


Dr. 


Do  Nones'  Consignmen'       Dr. 
To  Cash 


$  5,000 


1,000 


155 


3,908 


201 


26 


788 


45 


460 


0C 


00 


00 


00 


/ 


56 


00 


00 


00 


00 


99 


6 


NEW  YORK,  MARCH   3,  1858. 


2 
17 

17 

10 

2 

2 
5 

5 
11 

7 

17 

2 

10 

12 
4 

17 

6 
2 

2 
12 

2 
17 

4 
17 

i 

Cash                                     Dr. 

A. 

$     45G 

475 
2,670 

707 
55 

395 

4,444 

250 

1,233 

2,000 

Ot 

Sundries                               Dr.    To  De  Nones'  Consign't. 
Cash 300  00 

no 

(i 

Cash                                     Dr. 

00 

5 

Bills  Receivable                   Dr. 

To  Oliver  Otis  &  Co 

To  Sundries. 
$700  00 

7 

7  35 

35 

De  Nones'  Consignment       Dr. 

To  Cash 

9 

To  Sundries. 

$45  00 

10  00 

00 

S.  H.  Lovell                       Dr. 

"   De  Nones'  Consignment. . 

N 

To  Sundries. 

$245  00 

150  00 

00 

Bills  Payable                        Dr. 

To  Cash 

44 

« 

Cash                                    Dr. 

10 

00 

Cash                                    Dr. 

ii 

27 

Merchandise                         Dr. 

00 

100 


NEW  YORK,  MARCH    13,  1858, 


17 
9 
8 

14 


14 

16 


2 
10 


2 

18 
10 


18 
10 


6 

2 

18 

7 


Cash  Dr.  To  Sundries. 

To  Bills  Receivable $325  00 

"   Merchandise, 525  00 


14 


De  Nones'  Consignment       Dr.  To  Sundries. 

To  Commission $  215  71 

"   Store  Expenses 52  24 

"  Joseph  De  Nones 3,531  32 


16 


Lockhart  &  Arrott  Dr. 

To  Shipment  to  New  Orleans , 


Cash  Dr. 

To  Bills  Receivable . . 


Cash 


18 
Dr. 


To  Paul  Harris , 


20  

Sundries  Dr.  To  Cash. 

Company  1  Merchandise $2,000  00 

Paul  Harris 2,000  00 


21 

Company  1  Merchandise      Dr, 
To  Paul  Harris 


23 


Sundries  Dr.  To  Sundries. 

Bills  Payable $2,100  00 

Cash 909  10 


To  Company  1  Merchandise 3,000  00 

"    Interest '      9  10 


C.  C.  Marsh 

To  Cash. 


25 
Dr. 


850 


00 


3,799 

2,020 

251 

2,000 

4,000 
1,187 

3,009 
3,009 

300 


27 
00 

37 

00 

00 
50 

10 
10 

00 


101 


8 


NEW  YORK,  MARCH   26,  1858. 


5 
9 

18 
2 


18 

14 

5 

2 


18 
4 
2 


18 
9 
8 

10 


Sundries  Dr.  To  Sundries. 

Bills  Receivable $  4,444  44 

Exchange 355  56 


To  Company  1  Merchandise 2,400  00 

"  Cash 2,400  00 


27 


Sundries  Dr.  To  Comp.  1  Merchandise. 

William  Evans $  260  00 

Bills  Receivable 500  00 

Cash 440  00 


-    28 


Sundries  Dr.  To  Comp.  1  Merchandise. 

Merchandise $1,248  50 

Cash 1  50 


$  4,800 
4,800 


30 


Company  1  Merchandise      Dr.  To  Sundries. 

To  Commission $  196  25 

"  Store  Expenses 39  00 

"  Paul  Harris 3,807  37 

"  Profit  and  Loss 619  88 


4 

14 

2 


17 
12 
11 


APRIL    1. 


Store  Expenses 

To  Cash, 


Dr. 


Merchandise  Dr.  To  Sundries. 

To  Lockbart  &  Arrott $2,020  00 

"    Cash 300  00 


Sundries  Dr.        To  Fisher's  Consign't. 

S.  H.  Lovell $1,350  00 

Oliver  Otis  &  Co 810  00 


Cash 


To  Interest . 


7 
Dr. 


102 


1,200 


1.250 


00 


00 


00 


00 


4,662    50 


462 


2,320 


2,160 


21 


00 


00 


00 


00 


NEW  YORK,  APRIL    8,  18 


15 
17 


14 
2 
4 


5 
15 

12 
2 

7 


1G 
4 

17 


II 
15 

9 


1 

2 

17 


2 

17 


17 

9 

8 

15 


Irvine  Fisher  Dr. 

To  Fisher's  Consignment, 

10  — 


Joseph  De  Nones  Dr.  To  Sundries. 

To  Cash $  22  00 

"  Merchandise 40  00 


11 


Sundries  Dr.  To  Sundries. 

Bills  Receivable, $1,350  00 

Irvine  Fisher 1,350  00 


To  S.  H.  Lorell 1,350  00 

"  Cash, 1,322  33 

"  Discount 27  67 


13 


Shipment  to  Boston  Dr.  To  Sundries. 

To  Merchandise, $2,600'  00 

"    Fisher's  Consignment 720  00 

"    Cash 120  00 


14 


Sundries  Dr.         To  Oliver  Otis  &  Co. 

Irvine  Fisher $310  00 

Cash, 500  00 

15   IZZZZZ 


Thomas  Blanchard  Dr.  To  Sundries. 

To  Cash $500  00 

"  Fisher's  Consignment 43  20 


16 


Cash  Dr. 

To  Fisher's  Consignment , 


Fisher's  Consignment  Dr.  To  Sundries. 

To  Commission $  117  00 

"  Store  Expenses 18  00 

"  Irvine  Fisher 4,545  00 


18 


Sundries  Dr.  To  Merchandise. 

Bills  Receivable, $1,200  00 

Cash 637  50 


103 


$  1,440 
62 

2,700 
2,700 


3,500 


810 


543 


316 


4,680 


1,837 


00 


00 


00 


00 


00 


00 


20 


80 


00 


50 


NEW  YORK,  APRIL  18,  1858. 


15 
5 
2 


18 
6 
5 


Irvine  Fisher  Dr.  To  Sundries. 

To  Bills  Receivable $1,200  00 

"  Cash 245  00 


20 


Company  2  Merchandise    Dr.  To  Sundries. 

To  Bills  Payable $2,033  33 

"    Bills  Receivable 1,300  00 


21 


Sundries,  Dr.  To  Cash. 

Profit  and  Loss, 120  00 

Exchange 8  31 


24 


Sundries  Dr.  To  Sundries. 

Bills  Payable $2,190  00 

Cash 2,622  U 

Commission 12  06 


To  Bills  Receivable 4,444  44 

"  Exchange 377  78 

"  Interest 2  55 


Interest 


Dr. 


To  Cash. 


Cash 


27 
Dr. 


To  Merchandise. 


4 

16 

7 


Cash  Dr. 

To  Profit  and  Loss . . . 


Cash 


Dr. 


To  Profit  and  Loss . 


28 


Merchandise  Dr.  To  Sundries. 

To  Shipment  to  Port  au  Prince $6,000  00 

"   Schooner  Josephine 200  00 


104 


1,445 


,333 


128 


00 


33 


31 


4,824 


4,824 


141 


1,700 


530 


6,200 


77 


77 


40 


75 


00 


30 


00 


NEW   YORK,   APKIL    38,    1858 


11 


4 

15 
7 
3 
9 


3 
15 

9 


15 
3 
9 


14 
3 
9 

T 


15 
3 

9 


10 

7 


Merchandise  Dr.  To  Sundries. 

To  H.  B.  Walker  &  Co $2,650  00 

"   Schooner  Josephine 125  00 

"   Cash 75  00 

"    Commission 150  00 


29    - 

Cash  Dr. 

To  Schooner  Josephine . 

30    - 

Dr. 


Store  Expenses 

To  Cash. 


Cash  Dr.  To  Sundries. 

To  Joseph  Ruiz $4,987  50 

"    Commission 12  50 


H.  B.  Walker  &  Co.  Dr.  To  Sundries. 

To  Cash $2,643  37 

"    Commission 6  63 


Joseph  De  Nones  Dr.  To  Sundries 

To  Cash $3,402  98 

"   Exchange 51  82 

"   Interest 14  52 


Joseph  Ruiz  Dr.  To  Sundries. 

To  Cash $4,974  88 

"   Commission 1 2  62 


Exchange 

To  Cash, 


Dr. 


Interest  Dr.  To  Sundries. 

To  Thomas  Blanchard $493  66 

11   C.  C.  Marsh 297  69 


Charles  Lawrence 

To  Interest, 


Dr. 


14 


105 


3,000 


500 


00 


00 


200  T 


00 


5,000 


2,650 


3.469 


4,987 


78 


791 


00 


00 


32 


50 


75 


35 


31 


12 


NEW  YORK,  APRIL   30,  1858. 


Paul  Harris 

To  Interest . 


Dr. 


Profit  and  Loss  Dr.  To  Sundries. 

To  Store  Fixtures $  30  00 

"   Discount  and  Interest 612  53 

"   Store  Expenses 662  76 


Sundries 


Dr. 


To  Profit  and  Loss. 


Merchandise $3,562 

Schooner  Josephine 874 


86 
00 

782  79 


Commission . 

Exchange 164  76 

Shipment  to  New  Orleans 197  78 

Shipment  to  Port  au  Prince 1,890  44 


Profit  and  Loss  Dr  To  Sundries. 

To  Thomas  Blanchard $4,273  61 

"   C.  C.  Marsh 4,273  61 


Balances  of  April  30, 1850   Dr.  To  Sundries. 

To  Cash $26,274  07 

"   Merchandise 15,000  00 

"   Bills  Receivable 6,998  35 

"   Store  Fixtures 270  00 

"   Schooner  Josephine 5,000  00 

"    Charles  Lawrence 167  31 

"   S.  H.  Loveli 395  00 

"   Walter  Howard 307  62 

"   Shipment  to  Boston 3,500  00 

"    Company  2  Merchandise 3,333  33 


Sundries  Dr.     To  Balance  of  April  30,  1858. 

Bills  Payable .$4,137  11 

Paul  Harris 4,988  20 


Sundries  Dr.     To  Balance  of  April  30,  1858. 

Thomas  Blanchard $31,144  07 

C.  C.  Marsh 20,976  30 


106 


67 


1,305 


29 


7,172 


8,547 


63 


22 


61,245 


9,125 


52,120 


68 


31 


37 


NEW   YORK,    MAY    10,    1858. 


13 


20 
20 


6 
10 

T 


20 

21 

9 


20 
16 


20 
7 
5 


21 
6 


21 
11 


21 
9 


4 
G 
11 
12 
18 
'14 
19 


Store  Expenses  Dr.  To  Sundries. 

To  C.  J.  Martin $300  00 

"   John  Sims 1 200  00 


.   15 


Sundries  Dr.         To  Bills  Payable. 

Paul  Harris $1,988  20 

Interest 30  81 


16 


Sundries  Dr.       To  Joseph  Eaton  &  Co. 

Erie  Railroad  Stock $4,000  00 

Exchange 20  10 


1! 


Joseph  Eaton  &  Co.  Dr. 

To  Shipment  to  Boston , 


Sundries  Dr.      To  Joseph  Eaton  &  Co. 

Interest $  25  00 

Bills  Receivable, 554  90 


Insurance                              Dr. 
To  Bills  Payable 

- 23 


Sundries  Dr.  To  Sundries. 

Shipment  to  San  Francisco  (joint ) $  6,806  52 

Henry  Austin 6,806  52 


To  Merchandise 2,590  00 

"  Cash 10,625  00 

"   Exchange 105  00 

"   Insurance 293  04 


JO 


Merchandise  Dr.  To  Sundries. 

To  Bills  Payable $1,720  00 

"    Henry  Austin 16th,        300  00 

"    James  Truman 1 0th,        212  00 

"    E.  G.  Fail  &  Co 13th,        375  00 

"    William  Evans 30th,        420  00 

"    Barclay  &  Livingston  ..  .    .22nd,       550  00 


107 


$      500 


2,019 


4.020 


4,600 


579 


401 


13,613 


13,613 


3,577 


14 


NEW  YORK,       MAY      30,  1858. 


4 
5 
12 
10 
11 
11 
19 


3 
4 
6 

7 

11 
11 
10 
12 


3 
4 

6 

7 

8 

1 

10 

1 

14 

20 

20 


7 
10 


Sundries  Dr.  To  Merchandise. 

Bills  Receivable, $1,318  00 

S.  H.  Lovoll 17th,       500  00 

Paul  Harris 30th,       555  00 

Oliver  Otis  &  Co 20th,       562  50 

Henry  Austin  22nd,       337  50 

Barclay  &  Livingston 29th,       1 75  00 

it     _ 

Cash,  Dr.              To  Sundries. 

To  Merchandise, $1,266  00 

"    Bills  Receivable 1,207  35 

"    Discount  and  Interest 10  50 

"    Oliver  Otis  &  Co 30th,      350  00 

"    Henry  Austin 28th,      150  00 

"    Charles  Lawrence 28th,      167  31 

"    S.  H.  Lovell 30th,      300  00 

Sundries,  Dr.  To  Cash. 

Merchandise $  610  50 

Bills  Payable 500  00 

Discount  and  Interest 12  75 

Store  Expenses 75  95 

Thomas  Blanchard 30th,      198  23 

Paul  Harris 10th,  3,000  00 

C.  C.  Marsh 30th,      300  00 

William  Evans 12th,      200  00 

C.J.  Martin 16th,      150  00 

John  Sims 16th,      100  00 

<<  

Interest  Dr. 

To  Paul  Harris 


3,508 


00 


3,451 


16 


5,147 


13 


43 


34 


108 


JOURNAL  AND  DAY-BOOK. 


B.  &  M. 


1858. 


[This  book  is  a  duplicate  of  a  part  of  the  preceding  Day-book  and  Journal ; 
and  is  introduced  in  order  to  show  the  form  and  style  of  entries  when  the  two 
books  are  combined.] 


NOTE. 

This  book,  or  lather  the  following  pages  are  introduced  in  order  to  furnish 
examples  in  the  formation  of  entries  when  the  Day-book  and  Journal  are  com- 
bined ;  that  is,  the  form  and  style  of  entries  which  embody  the  substance  of 
both  a  journal  and  a  day-book  entry.  When  such  a  form  is  adopted,  a  book 
after  the  manner  of  the  preceding  day-book  is  dispensed  with,  or  kept  merely 
as  a  "blotter"  or  rough  record.  It  is  not  as  easy  to  give  clear  statements  of 
transactions  on  this  method  as  on  that  in  which  the  two  entries  are  distinct 
and  separate ;  but  it  is  shorter  and  often  adopted  by  old  and  experienced  book- 
keepers. When  the  pupil  understands  the  nature  and  object  of  the  two  entries 
separately,  he  will  find  little  difficulty  in  uniting  them  if  he  desires  to  do  so. 

In  order  to  exhibit  the  two  methods  of  recording  business  transactions,  the 
author  has  duplicated  the  transactions  of  January,  February,  and  May,  as  giv- 
en in  the  preceding  day-book,  and  presents  in  this  book  the  form  and  style  of 
entries  required  by  the  transactions  of  those  months,  when  the  day-book  and 
journal  entries  are  embraced  in  one  and  the  same  entry  and  book.  Several  of 
the  transactions  being  of  a  mixed  or  complicated  nature  are  disposed  of,  in  this 
book,  in  two  or  more  entries. 

It  is  not  necessary  to  draw  red  lines  under  the  names  of  the  debtors  and 
creditors,  in  the  manner  given  in  the  entries  in  this  book,  but  it  is  more  orna- 
mental, particularly  in  manuscript,  and  makes  more  prominent  that  portion  of 
the  record  which  is  the  journal  entry;  the  other  portion  consisting  of  explan- 
atory sentences  (the  day-book  part  of  the  entry)  is  placed  slightly  in  the  rear. 

There  is  supposed  to  be  two  columns  for  dollars  and  cents  —  ruled  lines  for 
the  inner  column  are  not  given,  in  the  present  instance,  for  want  of  room. 


*  These  words  in  italics  must  be  understood  (although  never  expressed)  in  every 
journal  entry ;  otherwise  the  debtors  named  in  the  entries  would  appear  to  owe  the 
creditors  that  follow,  instead  of  owing  the  owner  of  the  books.  See  explanations  of 
journalizing. 


New  York,  January  5,  1858. 


2 

5 
4 

10 


Sundries 


Dr. 


To  Thomas  Blanchard 


Received  of  him  the  following  effects  contributed 
as  capital : 
Cash deposited $26,000  00 

Bills  Receivable  •  -Note  No.  1,  per  Bill-Book. .  .2,000  00 


Sundries 


Dr. 


To  C.  C.  Marsh 


Received  of  him  the  following  effects  contributed 
as  capital : 

Cash deposited $12,000  00 

Bills  Receivable,  Note  No.  2,  per  Bill-Book. . .  .2,670  00 

MERCHANDISE Bill  of   Hardware,   as    per 

Invoice-Book 3,125   00 

Charles  Lawrence- •••balance  of  account...        140  00 


Sundries 


Dr. 


To  Bills  Payable 


10 
4 


For  amount  of  the  following  individual  Notes  as- 
sumed by  the  firm :  as  per  Bill-Book. 

Thomas  Blanchard Note  No.  1 $1,080  00 

C.  C  Marsh Note  No.  2 1,230  00 


Store-Fixtures     are*    Dr.  to  us 


Weave  Dr.      To   CASH for. 

Paid  W.  Wharton  for  Bill  of  Fixtures. $300  00 

8 

Paul  Harris  Dr. 


To  Merchandise 


Sold  Mdse  to  him  at  sixty  days,  as  per  Sales- 
Book $325  00 


28,000 


28,000 


17,935 


00 


00 


00 


17,935 


2,310 


2,310 


300 


00 


00 


00 


00 


325 


00 


111 


New  York,  January  10,  1858. 


f  3 
4 


Bills  Receivable 

To  Merchandise. 


Dr. 


Sold  Mdse  to  "VVm.  Blakeley  on  his  Note  No.  3, 
at  30  days,  as  per  Sales  Book $500  00 


11 

4 


4 
11 


Cash 


12 
Dr. 


$    500 


00 


To  Merchandise. 


Sold   Mdse  to   S.   H.   Lovell  for  Cash,   Sales- 
Book  $125  00 


Oliver  Otis  &  Co. 

To  Merchandise- 


13 
Dr. 


Sold  Mdse  to  them  to  be  paid  for  on  19th  inst.,  as 
per  Sales-Book $2000  00 


Merchandise 


14 
Dr. 


To  Henry  Austin. 


Bought  Mdse  of  him  at  thirty  days,  as  per  In- 
voice-Book   $1,500  00 


Merchandise 


Dr. 


To  Cash. 


Bought  Mdse  of  Rogers  &  Bros.,  for  Cash ;  In- 
voice-Book   $800  00 


Merchandise 


16 
Dr. 


To  Bills  Payable- 


Bought  Mdse  of  Rogers  &  Bros.,  on  our  Note  No. 
3,  at  90  days  ;  as  per  Invoice-Book. .  $2  100   00 


112 


125 


00 


2,000 


00 


1,500 


00 


800 


00 


2,100 


00 


I 


New   York,  January   16,   1858. 


3 


Merchandise 


Dr. 


To  Sundries 


12 

2 


11 

5 

2 


Bought  of  C.  Bernard  an  Invoice  of  Rice,  per 

Invoice-Book — $3,200 — and  paid  him  as  follows  : 

To  Cash Amt.  paid $2,000  00 


To  Merchandise,  Amt.  of  Sale  to  him,  as 

per  Sales-Book 1,200  00 


James  Truman 


17 
Dr. 


To  CASH lent  to  him  until  22d 

19  


Sundries 


Dr. 


To  Oliver  Otis  &  Co. 


Received  of  them  for  balance  of  account,  as  fol- 
lows: 

Bills  Receivable Note  No.  4,  at  30  days  for  $1,000  00 

Cash Amt.  of 1,000  00 


Cash 


20 
Dr. 


To  Merchandise- 


Sold  Mdse  to  sundry  persons   this  day  —  retail 
sales $250  00 


5 
10 


Bills  Receivable 


21 
Dr. 


To  Paul  Harris- 


Received  of  him  his  Note  No.  5,  at  60  days,  dated 
8th  inst.,  for  Bill  of  that  date $325  00 


2 

12 


22 

CAsn  Dr. 

To  James  Truman,  we'd  Cash  of  him  for  loan  of  17th 


113 


$3,200 


00 


3,200 


1,000 


2,000 


2,000 


00 


00 


00 


00 


250 


00 


325 


00 


1,000 


00 


I 


New  York,  January  22,  1858, 


11 

Henry  Austin               Dr. 

6 

$1,500 

00 

Delivered  to  him  our  Note  No.  4,  at  30  days,  dated 
14th  inst.,  for  amt.  of  Bill  of  that  date  $1,500  00 

24 

2 

Sundries                        Dr.               To  Merchandise 

410 

00 

12 

Sold  Mdse  this  day  as  follows,  as  per  Sales-Book 
S    H    LOVELL Bill  of  sundries $250   00 

2 

Cash Retail  sales 160   00 

410 

00 

2G 

4 

Sundries                       Dr.              To  Merchandise 

Sold  Mdse  this  day  to  the  following,  on  account, 
as  per  Sales-Book : 

400 

00 

13 
11 

William  Blakeley Bill  of  sundries $200  00 

400 

00 

28 

5 

Bills  Eeceivable        Dr.                     To  Sundries 

Lent  Cash  to  Jas.  Truman,  on  his  Note  No.  6,  at 
12  mos.,  endorsed  by  P.  Harris  : 

2,121 

00 

2 

7 

To  Cash Amt.  lent $2  000  00 

To  Interest Amt.  for  12  mos.,  at  6 

Per  cent,  added 121   00 

2,121 

00 

■  30- 

6 

Bills  Payable              Dr. 

2 

I 

1,230 

00 

114 


i 


New  York,  February  2,   1858. 


16 


13 

2 

8 


Bills  Payable 


Dr. 


To  Sundries 


Paid  our  Note  No.  1,  in  favor  of  H.  Austin,  due 
28th  inst.,  as  follows  : 
To  MERCHANDISE,  Sold  as  per  Sales-Book.. $550  00 

To  Cash Amt.  paid 525  32 

To    DISCOUNT 26  days  allowed,  6  per  cent.        4   68 


Store-Expenses 


To  Cash 


Dr. 

.Paid  for  sundries  last  month,  as  per 
Petty  Cash-Book 


Shipment  to  New  Orleans     Dr. 


To  Sundries 


Shipped  per  Brig  Pranklin,   and  consigned  to 
Lockhart  &  Arrot,  N.  O.,  to  be  sold  for  our  ac- 
count, as  follows  : 
To  Merchandise  .  .Invoice  of  Hardware  $1,722  22 

To   Cash Paid  Ins.  and  expenses      100  00 


Bills  Receivable 


Dr. 


To  Merchandise- 


Sold  Mdse  to  C.  Bernard,  on  his  Note  No.  7,  at 
6  months,  as  per  Sales-Book $320  00 


Sundries 


Dr. 


To  William  Blakeley 


Received  of  him  for  balance  of  his  account,  as 
follows  (he  having  failed) : 
CASH Amt.  received $100  00 

Profit  and  Loss  —  Amt.  lost 100  00 


115 


$1,080 


0C 


1,080 


00 


65 


1,822 


00 


22 


1,822 


22 


320 


00 


200 


200 


00 


00 


• 


New   York,   February    12,    1858 


10 
5 
2 


13 
5 


13 
6 

2 


8 
13 

7 


Merchandise  Dr.  To  Sundries 

Bought  of  Haven  &  Smith  an  Invoice  of  Dry 
Goods ;  delivered  to  them  in  payment  as  follows  : 

To  Chas.  Lawrence,  Amt.  of  our  Dft.  on  him,  at 
sight. $140  00 

To  Bills  Receivable,  Amt.  of  O.  Otis  & 

Co's  Note  No.  4 1000  00 

To  Cash Amt.  Paid 100  00 

.       u      ————————— 

William  Blakeley         Dr. 

To  Bills  Receivable,  For  amt.  of  his  Note  No.  3, 
laid  over 

13  

Merchandise  Dr.  To  Sundries 

Received  per  Stm.  Washington,  consigned  to  us 
for  our  account,  by  Walter  Howard,  London,  an 
Invoice  of  Dry  Goods  : 

To  Walter  Howard,  Amt.  of  £iioo  Stg., 

at  84  44 $4,888  89 

To  Bills  Payable Amt.  of  Duties  and 

Bonds  Nos.  5,  6,  7 1,222  22 

To  Cash Paid  for  freight 422  00 


Sundries  Dr.  To  Sundries 

Received  of  W.  Blakeley,  in  settlement  of  bal- 
ance of  his  account  of  $500  (he  having  failed) : 

Bills  Receivable,  Amt.  of  Draft  on  S.  H.  Lovell, 

at30days $251   37 

Profit  and  Loss- -Amt.  lost 250  00 

To  W.  BLAKELEY,  Balance  of  his  account. . .    500  00 

To  Interest Amt.  of  33ds.,  at  6  per  cent. 

in  the  Draft 1    37 


116 


$1,240 


00 


1,240 


00 


500 


6,533 


00 


11 


6,533 


11 


501 


501 


37 


37 


13 
G 


13 


14 


New   York,   February   16,   1858. 


Walter  Howard,  London,  Dr. 

To  Bills  Payable 

Accepted  his  Draft  at  20  days'  sight,  in  favor  of 
Lewis  Clapier,  No.  8,  for $4,444  44 

17 

Bills  Payable  Dr. 

To  Merchandise 

Paid  our  Note  No.  4,  in  favor  of  H.  Austin,  in 
Mdse,  as  per  Sales-Book $1,500   00 

20    

Walter  Howard,  London,        Dr.         To  Sundries 

Shipped  per  Stm.  Atlantic,  Capt.  West,  pursuant 
to  his  order,  as  follows : 

To  Merchandise — 

Amt.  of  Flour $1,260  00 

Amt.  of  Rice 1,470  00  $2,730  00 

To   Cash-  •  •  •  Amt.  of  Insurance. .     85  15 

Amt.  of  expenses. ..     75  00        160  15 

To  COMMISSION,  For  Shipping  and  Insurance     84  14 


Merchandise  Dr. 

To  William  Evans- 

For  Amt.  of  Bill  of  Flour  bought  of  him  on  ac- 
count (shipped  to  W.  Howard),  as  per  Invoice- 
Book  $1,260  00 

21    

Merchandise  Dr. 

To  Merchandise 

Amt.  of  Invoice  of  Dry  Goods  exchanged  with  C. 
Bernard,  for  same  amt.  in  Rice,  as  per  Invoice 
and  Sales  Books $1,530  00 


$4,444 


44 


1,500 


00 


2,974 


29 


2,974 


1,260 


29 


00 


1,530 


00 


117 


8 


New  York,  February  21,  1858. 


2 

12 

5 
4 


13 
9 
2 


Bills  Receivable 


Dr. 


To  Bills  Payable- 


Exchanged  Notes  with  C.  Bernard,  for  his  accom- 
modation ;  Nos.  9  and  9,  for $800   00 


Sundries 


-  23 
Dr. 


To  Merchandise 


Sold  Mdse  to  J.  Truman,  as  per  Sales-Book;  re- 
ceived on  account  as  follows : 

Bills  Receivable,  Amt.  of  his  Note  No.  10,  at  60 

days $500  00 

Cash Amt.  received 120  00 

JAMES  TRUMAN Balance  to  be  paid  on  26th  inst.  1,000  00 


Bills  Receivable 

To  Merchandise- 


24 
Dr. 


For  Amt.  of  Sale  to  Strang,  Adriance  &  Co.,  on 
their  Note  No.  11,  at  90  days,  as  per  Sales- 
Book  $2,000  00 


Sundries 


Dr. 


To  Bills  Receivable 


Discounted  Strang,  Adriance  &  Co.'s  Note  No.  11, 
as  follows : 


Cash Proceeds  of  Note . 


DISCOUNT Amt.  of  93  days,  at  6  per  cent. 


$1,969  00 
31  00 


Schooner  Josephine 


25 
Dr. 


To  Sundries 


Bought   said    Schooner  of  Capt.   Caleb  Davis ; 
delivered  in  payment  as  follows  : 

To  Walter  Howard,  Amt.  of  our  Dft.  on  him  at  60 

days'  sight,  £500  Stg.  at  $4-  44.  .$2,222   22 

To  EXCHANGE 8  per  cent,  premium  on 

£500 177  78 

To  Cash Amt.  paid 2,600  00 


118 


$800    00 


1,620 


00 


1,620 


2,000 


00 


00 


2,000 

2,000 
5,000 


00 


00 


00 


5,000 


GO 


New  York,  February  26,  1858. 


14 

William  Evans                 Dr. 

12 

$1,000 

00 

For  amt.  of  his  draft  at  sight,  on  the  former  ac- 

7 

Schooner  Josephine        Dr. 

2 

To  fUsrr 

155 

00 

Paid  sundry  Bills  for  her  account $155   00 

27 

16 

Shipment  to  Port  au  Prince     Dr.      To  Sundries 

For  amt.  of  the  following  shipped  per  Schr.  Jose- 
phine, consigned  to  H.  B.  Walker  &  Co.,  Port  au 
Prince,  to  be  sold  for  our  account : 

3,908 

00 

4 

To  Merchandise — 

Domestic  Goods $1,200  00 

Soap  and  Candles. . .   2,190  00 

7 

Cheese 288  00   $3,678  00 

To  Schooner  Josephine — 

Estimated  amt.  of  Freight  on  the 

above  articles  to  her  Credit 230  00 

3,908 

00 

4 

■    <t                         - 

Merchandise                   Dr. 

6 

2,190 

00 

lor  Amt.  of  Bill  of  Soap  and  Candles,  bought  of 
J.  R.  Dallett  &  Co.,  on  our  Note  No.  10,  at  60 
days  (part  of  above  shipment),  as  per  Invoice- 
Book $2,190  00 

4 

Merchandise                Dr. 

10 

288 

00 

Amt.  of  Bill  of  Cheese  bo't  of  him  on  acct.  (part 
of  above  shipment),  per  Invoice-Book.  .$288   00 

119 


10 


New  York,  February  28,  1858. 


10 


20 
20 


10 

7 

20 


21 
9 


Shipment  to  Port  au  Prince     Dr.      To  Sundries 

For  amt.  of  the  following  additional  expenses  on 
Invoice  shipped  per  Josephine,  27th  inst. 

To  Bills  Payable,  Amt.  of  our  Note  No.  n,  to 
Phoenix  Insurance  Company,  for  2  per  cent, 
on  $4,028  and  policy $81    56 

To  CASH- ••Amt.  paid  for  shipping  expenses. .  .120   00 


Schooner  Josephine 


Dr. 


To  Cash-  -For  amt.  of  one  half  per  cent,  and  policy  on 
$5,000,  paid  Atlantic  Insurance  Co 


May  10. 


Store-Expenses 


Dr. 


To  Sundries 


For  amt.  of  salaries  due  the  following  clerks  in 
our  employment : 
To  C.  J.  Martin-  •  •  -Amt.  to  5th  inst $300  00 


To  John  Sins Amt.  to  1st  inst. 


200  00 


15 


Sundries 


Dr. 


To  Bills  Payable 


For  amt.  of  our  Note  No.  16,  dated  1st  inst.,  at  90 
days,  delivered  to  P.  Harris,  for  part  of  balance  of 
his  account : 
PAUL   HARRIS,  For  part  of  balance  due  him $1,988  20 

30  81 


INTEREST For  93  days,  at  6  per  cent.,  in  Note 


16 


Sundries 


Dr. 


To  Joseph  Eaton  &  Co. 


For  amt.  of  our  draft  on  them,  at  three  days'  sight, 
passed  to  Strang,  Adriance  &  Co.,  in  payment  of 
Erie  Rail  Road  Stock : 

Erie  B.  B.  Stock,  Amt.  of  50  shares  at  $80 $4,000  00 

EXCHANGE  •  •  •  k  per  cent,  discount  allowed  on  Dft.  . .         20   10 


120 


$  201 


56 


201 


56 


26 


00 


500 


500 


2,019 


00 


00 


01 


2,019 


4,020 


01 


10 


4,020 


10 


New   York,   May    18,    1858. 


11 


20 
16 


20 


21 

6 


21 
11 


3 

21 
3 
9 


Joseph  Eaton  &  Co.,  Boston. 

To  Shipment  to  Boston. 


Dr. 


For  amt.  of  net  proceeds  of  consignment  to  them 
of  April  13th,  per  account  sales,  received  this 
day $4,600  00 


Sundries 


Dr.         To  Joseph  Eaton  &  Co. 


Received  from  them  our  account  current,  and  re- 
mittance for  balance. 

Bills  Receivable,  Amt.  of  Dft.,  at  60  days'  sight,  on  En- 
gle  &  Hazard,  accepted $554  90 

Interest Balance  in  their  favor  per  acct.  current     25  00 


Insurance 


-  20 
Dr. 


To  Bills  Payable- 


For  amt.  of  our  Note  No.  1 7,  passed  to  Atlantic 
Insurance  Company,  2  per  cent,  premium  on 
$20,000,  in  open  policy $401   25 


Sundries 


-  23 
Dr. 


To  Sundries 


Shipped  per  Stm.  Panama,  consigned  to  Simmons 
&  Co.,  San  Francisco,  to  bo  sold  for  the  joint 
account  of  H.  Austin  and  ourselves  ;  as  follows  : 
Shipment  to  San  Francisco,  Jt.  Ac,  For  amt.  of  our 

,806  52 


Henry  Austin. 


half  interest  in  said  Shipment. .; 
.  For  amt.  of  his  half  interest  ad- 


vanced by  us 6,806  52 

To  Merchandise — 

100  boxes  Sugar $1,150  00 

80  M.  Havana  Cigars    1,440  00  2,590  00 

To  CASH 10,500  Spanish  dollars....  10,500  00 

To  Exchange,  1  per  cent.  prcm.  on  do.  . .  105  00 

To   Cash For  Shipping  expenses. ..  125  00 

To  INSURANCE,  For  2  per  cent.  prem.  on 

$14,654,  entered  on  our  open  policy  293  04 


1C 


121 


$4,600 


0C 


579 


579 


401 


90 


90 


25 


13,613 


04 


13,613 


04 


12 


New   York,   May    30,    1858. 


n 

12 
18 
14 


19 


12 

10 

11 
12 

19 


Merchandise 


Dr. 


To  Sundries 


Bought  Mdse  during  this  month,  as  per  Invoice- 
Book,  as  follows : 

To  Bills  PAYABLE,  For  amt.  of  our  Notes,  viz.  :— 

No.  14,  to  T.  Owen  &  Son.  .$300  00 
No.  15,  to  T.  Owen  &  Son. .  2o0  00 
No.  1 8,  to  Trujillo  &  B.  . . .  320  00 
No.  19,  to  Harmony  &  Nephs  630  00 
No.  20,  to  Spofford  &  T 270  00  $1,720   00 

To  Henry  Austin,  Bill  of  5th.  .$200  00 
Bill  of  16th    100  00 


To  James  Truman Bill  of  10th. 

To  E.  G.  Fatl  &  Co. . . .  .Bill  of  13th. 


To  William  Evans- 


Billof  18th... 51 10  00 
Bill  of  25th...  175  00 
Bill  of  30th...    135  00 


300  00 
212  00 
375  00 


420  00 


To  Barclay  &  Livingston,  Bill  of  22d     550  00 


Sundries 


Dr. 


To  Merchandise 


Sold  Mdse  during  this  month,  as  per  Sales-Book, 
as  follows : 

Bills  Receivable,  For  amt.  of  Notes,  viz.  :— 

No.  23,  A.  G.  Beck $352  00 

No.  23,  W.  F.  Mott 415  00 

No.  24,  Aranguran  &  Co.  611  00  $1,378  00 


S.  H.   LOVELL Bill  of  12th 310  00 

Bill  of  17th 190  00 


Paul  Harris Bill  of  18th ISO  00 

Bill  of  28th 150  00 

Bill  of  30th 255  00 


500   00 


555  00 


Oliver  Otis  &  Co.,  Bill  of  20th 562  50 

Henry  Austin Bill  of  22d 337  50 

175  00 


Barclay  &  Livingston Bill  of  29th 


5,577 


06 


3,577 


3,508 


00 


00 


3,508 


00 


122 


New   York,   May    30,    1858. 


13 


n 

10 
12 

11 


1 

10 

1 

13 

20 
20 


Cash  Dr.  To  Sundries 

Received  Cash  during  this  month,  as  per  Cash- 
Book,  on  account  of  the  following  : 

To  Merchandise Amt.  of  Cash 

Sales  this  month $1,266   00 

To  Bills  Receivable...  Amt.  of  Notes 

due  or  discounted  this  month  : — 

No.  12 $707  35 

No.  14 500  00      1,207   35 

To  Discount  and  Interest — 

Amt.  this  month 10   50 

To  Oliver  Otis  &  Co.  ..22d,  .$200  00 

23d ...  150  00  350  00 

To  Charles  Lawrence,  28th 167  07 

To  S.  H.  Lovell 30th 300  00 

To  Henry  Austin 28th 150  00 


Sundries 


Dr. 


To  Cash 


Paid  Cash  during  this  month,  as  per  Cash-Book, 
on  account  of  the  following : 
MERCHANDISE,  Amt.  of  Cash  purchases  this  month..  $610   50 

Bills  Payable.... Amt.  of  our  Notes,  due  this 

month  —  No.  14.  ..    $300  00 
No.  15.  ..      200  00 


Discount  and  Interest.. Amt. 
Store-Expenses Amt. 


500  00 
12  75 

75  95 

198  23 

Paul  Harris 5th $2,500  00 

10th 500  00    3,000  00 

C.  C.  Marsh isth 

30th 

"William  Evans 12th 


Thomas  Blanch ard isth $98  23 

30th 100  00 


200  00 
100  00 


C.  J.  Martin 16th 


John  Sims 16th 


300  00 
200  00 

150  00 

100  00 


$3,450 


92 


3,450 


5,147 


92 


43 


5,147 


43 


123 


14 


New   York,   May    30,    1858. 


t 
10 


Interest 


Dr. 


To  Paul  Harris- 


13 


34 


Amt.  of  error  in  Journal  (April  30),  in  which  P. 
H.  was  charged  for  balance  of  interest  of  $6  67, 
when  he  should  have  been  credited $13  34 


124 


ow 


^  6/ 


\ 


125 


NOTE. 

This  is  the  Book  of  Accounts  ;  the  book  that  shows  the  results  of  all  our 
mercantile  transactions  condensed  and  brought  together  under  their  different 
heads.  On  one  folio  we  may  see  what  our  merchandise  cost  and  what  it  sold 
for  ;  on  another,  the  amount  of  our  notes  issued  and  redeemed  ;  on  another,  the 
amounts  a  person  owes  us  and  those  we  owe  him.  Thus  we  may  turn  over  its 
pages  and  see  at  one  view  the  amounts  that  all  persons,  properties,  or  objects, 
and  branches  of  our  business,  owe  to  us  or  have  cost  us,  and  all  that  we  owe  to 
them  or  that  they  have  produced  us. 

The  balance  sheet  (designed  to  show  the  state  of  our  affairs),  exhibiting  our 
assets  and  liabilities,  our  gains  and  losses,  and  our  net  capital,  is  made  out  from 
this  book. 

The  trial  balance  (a  paper  made  to  prove  the  postings,  additions,  and  sub- 
tractions in  this  book),  is  made  out  from  this  book,  monthly  or  quarterly. 

The  entries  in  this  book  are  brought  from  the  Journal,  daily,  weekly,  or 
monthly,  as  occasions  require. 

Accounts  current  are  made  from  this  book  with  reference  from  the  accounts 
(by  dates)  direct  to  the  Day  Book  for  explanations. 

***  The  width  of  the  pages,  in  this  Leger,  does  not  admit  both  sides  of  an 
account  on  one  page  ;  in  Blank  books  it  is  generally  otherwise. 


126 


INDEX. 


A. 

Austin,  Henry 11 


B. 

Bills  Receivable 5 

Blanchard,  Thomas 1 

Bills  Payable 6 

Blakeley,  William 13 

Balance  of  April  30,  1858 19 

Barclay  &  Livingston 19 


C. 

Cash   3,2 

Commission   9 

Company  1  Merchandise 18 

Company  2  Merchandise 18 


r>. 

Discount  and  Interest 7 

De  Nones'  Consignment 17 

De  Nones,  Joseph 14 


E. 

Evans,  William 14 

Exchange 9 

Erie  Railroad  Stock 21 

Eaton  &  Co.,  Joseph 20 


F. 

Fisher's  Consignment 11 

Fisher,  Irvine 15 

Fail&  Co.,  E.  G 18 


Gr. 


H. 

Harris,  Paul .... 
Howard,  Walter 


,10 
13 


127 


INDEX. 


I.&J. 

Interest . . 
Insurance 


N. 


.  7 
,21 


K. 


L. 

Lawrence,  Charles 10 

Lovell,  S.  H 12 

Lockhart  &  Arrott 14 


M. 

Merchandise 4 

Marsh,  C.  C 1 

Martin,  C.J 20 


O. 

Otis  &  Co.,  Oliver 


11 


P. 

Profit  &  Loss. 


Q. 


128 


INDEX 


R. 

V. 

S. 

Shipment  to  Port  au  Prince 16 

Sims,  John 20 

w. 

Walker  &  Co.,  H.  B 15 

T. 

Y. 

Z. 

17 


12'J 


DR. 


THOMAS 


1858. 

Jan. 
April 
it 

5 
15 
30 

To  Bills  Payable 

1 

9 

12 

$   1,080 

543 

31,144 

OC 
2C 
07 

32,767 

27 

1859. 

May 

30 

To  Cash 

14 

$      198 

9? 

DR. 


CHRISTOPHER 


1858. 

Jan. 

March 

April 


1858. 

May 


5 

2.") 
30 


30 


To  Bills  Payable 

"    Cash 

"    Balance 


To  Cash . 


130 


1 

7 

12 


14 


$   1,230 

300 

20,976 

22,506 


$      300 


00 
00 
30 

30 


00 


BLANCHARD. 


CR. 


1858. 

Jan. 
April 


1858. 

April 


5 
30 
80 


30 


By  Sundries 

"    Interest 

"    Profit  and  Loss , 


By  Balance 


1 
U 
12 


28,000 

493 

4,273 


32,767 


$31,144 


or. 
c.i 


27 


07 


C.  MARSH. 


CR, 


Jan. 
April 


1858. 

April 


5 

:jo 
30 


30 


By  Sundries 

"   Interest 

"   Profit  and  Loss 


By  Balance. 


131 


1 
11 
12 


$20,976 


3C 


DR. 


CASH. 


1858. 

Jan. 

;> 

<( 

12 

a 

19 

ti 

20 

N 

22 

(( 

24 

Feb. 

9 

i« 

23 

<< 

24 

March 

3 

<( 

4 

«( 

4 

(< 

9 

<« 

10 

it 

12 

tt 

16 

it 

18 

<( 

23 

n 

21 

<« 

28 

April 

7 

<< 

14 

(i 

16 

H 

18 

To  Sundries 

"  Merchandise 

"  Oliver  Otis  &  Co 

"  Merchandise 

"  James  Truman 

"  Merchandise 

"  William  Blakeley 

"  Merchandise 

"  Bills  Receivable 

"  De  Nones'  Consignment. 

"  De  Nones'  Consignment. 

"  Bills  Receivable 

"  S.  H.  Lovell 

"  De  Nones'  Consignment. 

"  Sundries 

"  Bills  Receivable 

"  Paul  Harris 

"  Sundries 

"  Company  1  Merchandise 

"  Company  1  Merchandise 

"  Interest  

"  Oliver  Otis  &  Co 

"  Fisher's  Consignment.. . . 

"  Merchandise 


42,724  00 


5-2,085  34 


Carried  forward , 


*  Pencil  figures. 


9 

9 

10 


38,000 
125 

1,000 
250 

1,000 
160 
100 
120 

1,969 
456 
300 

2,610 
250 

1,233 
850 
251 

2,000 
909 
440 
1 
21 
500 
316 
637 


53,560 


132 


CE. 


'I 


1869. 

Jan. 


Feb. 


March 


April 


14 
16 

n 

28 

30 

2 

2 

4 

12 

13 

20 

25 

26 

28 

28 

2 

3 

7 

9 

20 

25 

26 

1 

2 

10 

11 

13 

15 

18 


Store  Fixtures 

Merchandise , 

Merchandise 

James  Truman 

Bills  Receivable 

Bills  Payable 

7,330  00 

Bills  Payable 

Store  Expenses 

Shipment  to  New  Orleans 

Merchandise 

Merchandise 

Walter  Howard 

Schooner  Josephine 

Schooner  Josephine 

Shipment  to  Port  au  Prince 

Schooner  Josephine 

11,603  47 

Store  Expenses 

De  Nones'  Consignment 

De  Nones'  Consignment 

Bills  Payable 

Sundries 

C.  C.  Marsh 

Sundries 

53,597  91 

Store  Expenses 

Merchandise 

Joseph  De  Nones 

Sundries 

Shipment  to  Boston 

Thomas  Blanchard 

Irvine  Fisher 

Carried  forward 


300 

800 

2,000 

1,000 

2,000 

1,230 

525 

65 

100 

100 

422 

160 

2,600 

155 

120 

26 

45 

460 

45 

4,444 

4,000 

300 

2,400 

462 

300 

22 

1,322 

120 

500 

245 


26,269 


133 


8 


DR. 


CASH. 


Brought  forward 

To  Sundries 

27      "    Merchandise 

27      "    Profit  and  Loss 

27      "    Profit  and  Loss 

29      "    Schooner  Josephine 
"    Sundries 


30 
30 


To  Balance  . 
"   Sundries, 


14 


26,274 
3,451 


134 


CR. 


3 


April 


21 
24 
28 
30 
30 
30 
30 
30 
30 


185?. 

May 


30 


Brought  forward. 

By  Sundries 

'    Interest 

'    Merchandise 

'    Store  Expenses 

'    H.  B.  Walker  &  Co 

'    Joseph  Be  Nones 

'    J.  Ruiz 

'    Exchange 

'    Balance 


By  Sundries. 
"    Sundries . 


13 
14 


10,625 
5,147 


135 


DR. 


MERCHANDISE 


195ft 

Jan. 


Feb. 

<< 

M 

<< 

March 

H 

April 


April 
May 


5 
14 
14 
16 
16 
12 
13 
20 
21 
10 
28 

2 
28 
28 
30 


30 
30 
30 


To  Sundries 

"    Henry  Austin 

"    Cash 

"    Bills  Payable 

"    Sundries 

10,725  00 

"    Sundries 

"    Sundries 

"    William  Evans 

"    Merchandise 

91,388  11 

"    De  Nones'  Consignment 

"    Company  1  Merchandise 

24,536  61 

"    Sundries 

"    Sundries 

"   Sundries 

86,056  61 

"    Profit  and  Loss 


Dollars 


To  Balance  . 
"  Sundries 
"   Cash  . . . 


$  3,125 
1,500 
800 
2,100 
3,200 
1,240 
6,533 
1,260 
1,530 
2,000 
1,248 
2,320 
6,200 
3,000 
3,562 


39,619 


$  15,000 

3,577 

610 


136 


CK. 


1358. 

Jan. 

8 

ti 

10 

u 

12 

u 

13 

It 

16 

a 

20 

it 

24 

(( 

26 

Feb. 

2 

(< 

4 

<< 

6 

it 

IT 

it 

20 

a 

21 

it 

23 

it 

24 

ii 

27 

March 

2 

tt 

9 

a 

12 

April 

10 

u 

13 

a 

18 

a 

27 

a 

30 

1858. 

May 

23 

«< 

30 

<< 

30 

Paul  Harris 

Bills  Receivable 

Cash 

Oliver  Otis  &  Co 

Merchandise 

Cash 

Sundries , 

Sundries 

Bills  Payable , 

Shipment  to  New  Orleans  . 

Bills  Receivable 

Bills  Payable 

Walter  Howard , 

Merchandise 

Sundries 

Bills  Receivable 

Shipment  to  Port  au  Prince . 

Sundries 

S.  H.  Lovell 

Cash 

Joseph  Do  Nones 

Shipment  to  Boston 

Sundries 

Cash 

Balance 


5,210  00 


18,382  22 


19,940  22 


By  Sundries 
"  Sundries 
"    Cash  . . . 


1 
1 
1 
1 
2 
2 

a 

2 
3 
3 
8 

4 
4 
4 
4 
4 
5 
5 
6 
7 
9 
9 
9 
10 
12 


325 

500 

125 
2,000 
1,200 

250 

410 

400 

550 
1,722 

320 
1,500 
2,730 
1,530 
1,620 
2,000  j  00 
1,200  I  00 

788  !  00 


00 

00 
00 
00 
00 
00 
00 
00 
00 
22 
00 
00 
00 
00 
00 


245 

525 

40 

2,660 

1,837 

141 

15,000 


39,619 


2,590 
3,508 
1,266 


00 
00 
00 
00 
50 
75 
00 


47 


00 
00 
00 


18 


137 


DR. 


BILLS 


1858 

•Ian. 

5 
10 
19 
21 
28 

6 
13 
21 
23 
24 

5 
26 
27 
11 
18 

To  Sundries 

1 
1 
2 
2 
2 

3 
4 
4 
4 
4 
6 
8 
8 
9 
9 

$   4,670 
500 

1,000 
325 

2,121 
320 
251 
800 
500 

2,000 
707 

4,444 
500 

1,350 

1,200 

i 
Ofl 

a 

"    Merchandise 

00 

u 

"    fliver  #tis  &  C# 

01) 

II 

"    Paul  Harris 

00 

Feb. 

"    Sundries 

8,616  00 

"    Merchandise 

00 
00 

u 

"    Sundries 

37 

"    Bills  Payable 

"    Merchandise 

00 
00 

March 

"    Merchandise 

18,487  87 

"    Sundries 

00 
35 

"    Sundries 

44 

u 

"    Company  1  Merchandise 

00 

April 

18,139  16 

"    Sundries 

00 

"    Merchandise 

20,689  16 

00 

20,689 

16 

1858. 

April 

30 
18 
30 

To  Balance 

13 
14 

$   6,998 

554 

1,378 

35 

90 
00 

May 

"   J.  Eaton  &  Co 

ii 

"    Merchandise 

8,931  95 

138 

RECEIVABLE. 


CR. 


1858. 

Feb. 


March 


April 


185S. 

May 


12 
12 

24 
4 

12 
1G 
18 
20 
24 

30 


30 


By  Merchandise 

'  William  Blakeley 

1  Sundries 

'  Cash 

'  Cash 

'  Cash 

'  Irvine  Fisher 

'  Company  2  Merchandise 

'  Sundries 

"   Balance 


By  Cash 


139 


6 


DR. 


BILLS 


1858. 

Jan 

30 

Feb. 

2 

a 

H 

March 

9 

U 

23 

April 

24 

<< 

30 

1S58. 

May 


30 


To  Cash 

"    Sundries 

"    Merchandise 

3,810  00 

"    Cash 

"    Sundries 

10,354  44 

"    Sundries 

19,544  44 

"    Balance 


To  Cash 


8 
8 

4 

6 

1 
10 


14 


1,230 
1,080 
1,500 
4,444 
2,100 
2,190 
4,131 


6,681 


500 


00 
00 
00 
44 
00 
00 
11 


55 
00 


dr. 


STORE 


1858. 

Jan. 

t 

To  Cash 

1 

$      300 

00 

300 

00 

1868. 

April 

30 

To  Balance 

$      270 

00 

140 


PAYABLE 


CR. 


e 


1858 

Jan 


Feb 


April 


18S8. 

April 
May 


5 

it; 

22 
13 

it; 

21 

27 
28 

20 


30 

k; 

18 
30 


By  Sundries 

"  Merchandise 

"  Henry  Austin 

"  Merchandise 

"  Walter  Howard 

"  Bills  Receivable 

"  Shipment  to  Port  au  Prince . 

"  Shipment  to  Port  au  Prince , 

"  Company  2  Merchandise  . . . 


By  Balance .... 
"  Sundries  . .  . 
"  Insurance  . . 
"    Merchandise 


5,910  00 


14,648  19 
16,681  S3 


13 
13 
13 


$  2,310 
2,100 
1,500 
1  222 
4,444 
800 
2,190 
81 
2,033 


16,681 


4,137 

2,019 

401 

1,720 


FIXTURES 


CR. 


1858. 

April 


30 
30 


By  Profit  and  Loss , 
"    Balance 


141 


12 

12 


DR. 


DISCOUNT     AND 


185S. 

Feb. 
April 


1858. 

May 


i 


mc 


u 
u 

30 


15 
18 
30 
30 


To  Bills  Receivable 

"    Cash 

"   Sundries 


Dollars 


To  Bills  Payable  . 
"    J.  Eaton  &  Co 

"    Cash 

"    Paul  Harris  . . 


13 
13 
14 
14 


31 


791 


#830 


30 
25 
12 
13 


DR. 


SCHOONER 


1858. 

Feb. 
a 

u 
April 

25 
26 
28 
30 

"    Cash 

"    Cash 

"    Profit  and  Loss . . 

5,181  00 

5 

5 

5 

12 

$  5,000 

155 

26 

8t4 

00 
00 
00 
00 

Dollars 

6,055 

00 

1858. 

April 

30 

To  Balance 

■» 
$  5,000 

00 

142 

INTEREST. 


1858. 

Jan. 

Feb. 
i« 

March 

if 

April 


1858. 

May 


2s 

2 

18 

5 

28 

1 

11 

24 

80 

30 

30 

30 


CO 


OR, 


By  Bills  Receivable  . . 

"    Bills  Payable 

"    Sundries 

"  Bills  Receivable  . . 

"    Sundries 

"    Cash 

"    Sundries 

"    Sundries 

"  Joseph  De  Nones  . 

"  Charles  Lawrence , 

"    Paul  Harris 

"  Profit  and  Loss. . . 


I 


By  Cash 


Dollars 


2 
3 

4 
6 

8 
9 

Id 
II 
11 
12 
12 


14 


121 
4 
1 
t 

9 
21 
27 

2 
14 

2 

G 
612 


830 


10    50 


JOSEPHINE. 


CR. 


185J- 

Feb. 

21 
28 
28 
29 
30 

By  Shipment  to  Port  au  Prince 

5 
10 
11 
11 
12 

$      230 

200 

125 

500 

5,000 

on 

April 

<< 

"    Merchandise 

0(1 

"    Merchandise 

00 

u 

"    Cash 

00 

it 

1,055  00 

00 

6,055 

oc 

143 


8 


DR. 


STORE 


1858. 

Feb. 

March 

April 
u 

2 

2 

1 

30 

To  Cash 

"    Cash 

"    Cash 

"    Cash 

3 

5 

8 

11 

$        65 

45 

462 

200 

OC 
00 
00 
00 

772 

00 

P5S. 

May 
<< 

4 

10 

30 

To  Sundries 

13 
14 

$      500 
75 

00 

"  Cash 

95 

DR. 


PROFIT 


9 

13 
21 
30 
30 


To  William  Blakeley 

"    Sundries 

"    Cash 

"    Sundries 

"    Sundries 


144 


3 

4 
]() 
12 
12 


EXPENSES 


CR. 


8 


1858. 

March 

u 

April 


14 

30 
16 

30 


By  De  Nones'  Consignment . , 
"  Company  1  Merchandise. 
"  Fisher's  Consignment. . . . 
"    Profit  and  Loss , 


52 

39 

18 

662 


772 


24 
00 
00 

76 


00 


AND    LOSS 


CR. 


1358. 

March 
April 


30 

27 

27 

30 


By  Company  1  Merchandise. 

"    Cash , 

"    Cash 

"    Sundries , 


1.91 


145 


10 
10 
12 


9 


DR. 


COMMISSION. 


185?. 

April 

24 
30 

To  Sundries 

10 
12 

$        12 

782 

OP 

"    Profit  and  Loss 

79 

yS                                     Dollars 

194 

85 

- 

DR. 


1858 

March 
April 


1S58. 

May 


36 

21 
80 
30 


1G 


To  Sundries 
"  Cash  . . . 
"    Cash  . . . 


"    Profit  and  Loss 


To  J.  Eaton  &  Co. 


146 


EXCHANGE. 


13 


20 


10 


CR. 


9 


185&. 

Feb. 

20 

March 

14 

" 

30 

April 

16 

u 

28 

« 

30 

u 

30 

«( 

30 

By  Walter  Howard 

"  De  Nones'  Consignment. 

"  Company  1  Merchandise 

"  Fisher's  Consignment  . . 

"  Merchandise 

"  Cash 

"  H.  B.Walker  &  Co.... 

"  Joseph  Ruiz 


4 

7 

8 

9 

11 

11 

11 

11 


84 
215 
196 
lit 

150 

12 

6 

12 


194 


CR. 


Feb. 
April 


18S3. 

May 


25 
14 

30 


23 


By  Schooner  Josephine 

"    Sundries 

"    Joseph  De  Nones  . . 


By  Sundries 


147 


13 


105 


10 


DR. 


CHARLES 


1888. 

Jan. 

5 

2 

4 

30 

To  Sundries 

1 

5 

6' 
11 

$         140 
288 
175 
2 

or 

March 

M 

April 

00 
00 
31 

605 

31 

18S8. 

April 

30 

To  Balance 

$     167 

31 

DR. 


PAUL 


1818. 

Jan. 

8 

To  Merchandise 

1 

7 
12 

12 

$      325 

2,000 

6 

4,988 

00 

March 
April 

u 

20 
30 

30 

"    Cash 

00 
67 
20 

7,319 

87 

1858, 

May 

15 
30 
30 

To  Bills  Payable 

13 
14 
14 

$   1,988 

555 

3,000 

9,0 

a 

"    Merchandise 

00 

u 

"    Cash 

148 

00 

LAWRENCE 


CE. 


10 


18S8. 

Feb. 

(( 

March 
April 


1858. 

May 


12 

21 

1 

30 


28 


By  Merchandise 

"    Shipment  to  Port  au  Prince 

"    De  Nones'  Consignment 

"    Balance 

By  Cash 


8 

5 
6 

12 


14 


140 

288 

10 

16T 


G05 


167 


00 
00 
00 
31 


31 


31 


HARRIS. 


CR. 


1858. 

Jan. 
March 


1858. 

April 
May 


2L 
18 
21 
80 


By  Bills  Receivable 

"    Cash 

"    Company  1  Merchandise 
"    Company  1  Merchandise 

By  Balance 

"    Interest 


14 


$  4,988 
13 


20 
34 


149 


11 


DR. 


OLIVER 


1858. 

Jan. 

13 

26 

2 

6 

To  Merchandise 

1 

2 
5 
8 

$   2,000 
200 
500 
810 

or 

a 

"    Merchandise 

no 

March 

"    Merchandise 

00 

April 

00 

3,510 

00 

1858. 

May 

20 

To  Merchandise 

14 

$      562 

'SO 

DR. 


HENRY 


1868. 

Ian. 

22 

To  Bills  Payable 

2 

$   1,500 

00 

1858. 

May 

23 
22 

To  Sundries , 

13 
14 

$  6,806 
33Y 

52 
50 

a 

150 


OTIS    &    CO. 


CR. 


11 


1838. 

Jan. 

March 

April 


19 

5 
14 


1858. 

May 


By  Sundries 

"    Bills  Receivable 
"    Sundries 


By  Cash 


14 


$   2,000    00 


700 
810 


00 
00 


3,510    00 


$      350    00 


AUSTIN. 


CR. 


1858. 

Jan. 


14 


May        16 


28 


By  Merchandise 


By  Merchandise 


Cash 


151 


13 
14 


$      300 
150 


00 

00 


12 


DR. 


JAMES 


1S58. 

Jan. 

17 
23 

To  Cash 

2 
4 

$   1,000 
1,000 

00 

Feb. 

"    Merchandise 

00 

2,000 

00 

DR. 


S.   H. 


1S58. 

Jan. 

March 

April 


April 
May 


24 
9 

6 


30 
11 


To  Merchandise , 

"    Sundries 

"    Fisher's  Consignment. 

To  Balance 

"    Merchandise 


14 


395 
500 


152 


TRUMAN. 


CR. 


12 


Jan. 
Feb. 


1853. 

May 


22 
26 


10 


By  Cash 

"    William  Evans. 


By  Merchandise 


13 


$   1,000  j  00 


1,000 


2,000 


00 
00 


$      212 


00 


LOVELL. 


CR. 


1858. 

March 
April 


1858. 

May 


9 
11 
30 


30 


By  Cash  . . . 
"  Sundries 
"    Balance 


By  Cash 


14 


153 


300 


00 
00 
00 

00 
00 


13 


DR. 


WILLIAM 


1858. 

Jan. 

26 
12 

2 
3 

i 
$   200 

00 

Feb. 

500  |  00 

too 

00 

DR. 


WALTER 


185S. 

Feb. 


18S3. 

April 


16 

20 


To  Bills  Payable 
"    Sundries 


30    To  Balance 


BLAKELEY 


CR. 


13 


1858. 

Feb. 


By  Sundries . 
"   Sundries . 


200 
500 


00 
00 


700 


00 


HOWARD,     London. 


CR. 


1858. 

Feb. 
<< 

April, 


13    By  Merchandise 


25 

30 


"    Schooner  Josephine 
"   Balance 


155 


* 


14 


DR. 


WILLIAM 


1858. 

Feb. 
March 


2G 

21 


1838. 

May 


12 


To  James  Truman 

"    Company  1  Merchandise 


To  Cash 


U 


$   1,000 
260 


1,260 


200 


00 
00 


00 


00 


DR, 


LOCKHART 


1868. 

March 


1G 


To  Shipment  to  New  •Orleans 


$  2,020 


00 


DR. 


JOSEPH 


1858. 

April 
<< 

10 
30 

To  Sundries 

9 
11 

i 

$        62 
3,469 

00 

32 

3,531 

32 

156 


EVANS. 


CE.  14 


1S58. 

Feb. 

20 

4 

$    1,260 

00 

1,260 

00 

1853. 

May 

30 

13 

$      420 

00 

&    AEEOTT,    Now  Orleans. 


CE. 


April 


By  Merchandise 


2,020 


00 


DE    NONES,    Cadiz. 


CE. 


1?50 

March 


14 


By  De  Nones'  Consignment 


157 


15 


DE. 


IRVINE 


1858. 

April 
u 

8 
11 
14 
16 

9 

9 

9 

10 

$  1,440 

1,350 

310 

1,445 

00 
00 

11 

"   Oliver  Otis  &  Co 

00 

tt 

00 

4,545 

00 

DR. 


H.    B.   WALKER 


1858. 

April 

30 

To  Sundries 

11 

$  2,650 

00 

DR. 


JOSEPH 


1858. 

April 


30 


To  Sundries. 


158 


11 


$4,987 


50 


FISHER. 


CE.  15 


1858 

April 

16 

9 

$   4,545 

OC 

^^ 

4,545 

00 

&    C  O  M  P . ,    Port  au  Prince. 


CK, 


185S. 

April 


28 


By  Merchandise 


11 


2,650 


00 


R  U  I Z ,    Puerto  Principe. 


OR. 


1858. 

April 


30 


By  Cash 


11 


4,981 


50 


159 


1G 


DR. 


SHIPMENT    TO 


Feb. 
April 


4 

30 


To  Sundries 

"    Profit  and  Loss 


3 

12 


1,822 
191 


2,020 


22 

18 


00 


DR. 


SHIPMENT    TO 


1858. 

Feb 

21 
28 
30 

To  Sundries 

5 

5 

12 

$  3,908 

201 

1,890 

00 

April 

56 
44 

6,000 

00 

DR. 


SHIPMENT   TO 


1858. 

April 


1858. 

April 


13 


80 


To  Sundries 


To  Balance 


160 


$  3,500 


$  3,500 


00 


00 


NEW   ORLEANS 


CE.  1G 


1S58 

March 

16 

By  Lockhart  &  Arrott 

1 

$   2,020 

on 

2,020 

00 

PORT   AU   PRINCE 


CR. 


1858. 

April 

28 

10 

%   6,000 

00 

^^^ 

6,000 

00 

BOSTON. 


CR. 


1?50. 

April 


1858. 

May 


30 


IS 


By  Balance. 


By  J.  Eaton  &  Co , 


21 


161 


12 

13 


3,500 


4,600 


00 
00 


17 


DE. 


DE     NONES' 


1858. 

March 

<< 

u 

3 

7 

14 

To  Cash 

6 
6 

7 

'  $      460 

55 

3,799 

OC 
00 

27 

^^^ 

4,314 

27 

DR. 


FISHER'S 


1868. 

April 

16 

To  Sundries 

9 

$  4,680 

00 

// 

4,680 

OC 

1 

162 


CONSIGNMENT, 


CE. 


17 


1858. 

March 


3 

4 

8 

10 

10 


By  Cash 

"  Sundries  . . . 

"  S.  H.  Lovell 

"  Cash 

"  Merchandise 


6 
6 
6 
6 
6 

$   456 

415 

150 

1,233 

2,000 

4,314 

00 
00 

00 

2? 
00 

27 


CONSIGNMENT 


CR. 


1853 

April, 


By  Sundries 

"   Irvine  Fisher 

"  Shipment  to  Boston 
"  Thomas  Blanchard. 
"    Cash 


163 


18 


DR. 


COMPANY    1 


1868. 

March 

20 
21 
30 

To  Cash 

7 
7 
8 

$  2,000 
1,187 
4,662 

01 

u 

"   Paul  Harris 

50 

u 

. 

50 

7,850 

00 

DR. 


COMPANY    2 


1868. 

April 

30 

To  Sundries 

10 

$  3,333 

33 

1858. 

April 

30 

To  Balance 

3,333 

33 

DR. 


EDWARD     Gc. 


164 


MERCHANDISE 


CR. 


18 


Id  58 

March 

23 

By  Sundries 

t 

26 

"   Sundries 

it 

21 

"   Sundries 

n 

28 

"   Sundries 

$  3,000 
2,400 
1,200 
1,250 

7,850 


00 
00 
00 
00 

00 


MERCHANDISE 


CR 


18  58. 

April 


SO 


By  Balance. 


12 


$  3,333 


33 


FAIL    &    CO. 


CR. 


May 


l:'. 


By  Merchandise 


165 


13 


$      315 


00 


19 


DR. 


BALANCES     OF 


1858. 

April 


30 
30 
30 
30 
30 
30 
30 
30 
30 
30 


To  Cash 

"  Merchandise 

"  Bills  Receivable 

"  Store  Fixtures 

"  Schooner  Josephine , 

"  Charles  Lawrence , 

"    S.H.Lovell 

"  Walter  Howard 

"  Shipment  to  Boston 
"  Company  2  Merchandise 


12 

$26,274 

12 

15,000 

12 

6,998 

12 

270 

12 

5,000 

12 

107 

12 

395 

12 

307 

12 

3,500 

12 

3,333 

61,245 

07 
00 
35 
00 
00 
31 
00 
62 
00 
33 

68 


DR. 


BARCLAY     & 


1868. 

May 


29 


To  Merchandise. 


166 


14 


175 


0C 


APRIL     30,     1858. 


CR. 


19 


April 


30  i  By  Bills  Payabie 


80 
30 
30 


"   Paul  Harris 

"   Thomas  Blancbard 
"    C.  C.  Marsh 


LIVINGSTON 


CR, 


1S58. 

May 


22 


By  Merchandise 


13 


550 


00 


107 


20        r>n. 


o.  J. 


1858. 

May 


1G 


To  Cash 


14 


$      150 


00 


DR. 


JOHN 


1858. 

May 


16 


To  Cash. 


14 


100 


00 


r>R. 


JOSEPH 


1858. 

May 

18 

13 

$   4,600 

00 

4,600 

00 

168 


MARTIN. 


CR. 


SO 


1858. 

May 


to 


By  Store  Expenses , 


13 


300 


00 


SIMS. 


CR, 


1858 

May 


10 


By  Store  Expenses. 


13 


200 


00 


EATON    &    CO.,    Boston. 


CR. 


1858. 

May 


By  Sundries 
"    Sundries 


09 


169 


21  DE- 


ERIE    KAIL 


1868. 

May 


16 


To  J.  Eaton  &  Co. 


13 


$  4,000 


0C 


DE, 


INSURANCE 


1858. 

May 


18 


To  Bills  Payable. 


13 


$      401 


25 


DR. 


SHIPMENT     TO 


1858. 

May 


23 


To  Sundries. 


13 


6,806 


52 


no 


ROAD     STOCK 


CR. 


21 


CR. 


1858. 

May 


23 


By  Sundries. 


13 


$       293 


04 


SAN    FRANCISCO,    (Joint,)  OR. 


171 


\ 


Note. — In  this  book  first  appear  all  the  suras  of  money  which  we  receive  and 
pay  ;  the  entries  are  made  immediately  on  receiving  or  paying  the  sums, 

This  book  gives  us  an  exact  idea  of  the  state  of  our  Cash  funds  ;  showing  from 
what  source  we  have  received,  how  we  have  applied  them,  and  what  amount  we 
ought  to  have  on  hand.  From  this  book  entries  pass  into  the  Day  Book  daily, 
weekly,  or  monthly  ;  if  weekly  or  monthly,  the  forms  of  the  entries  are  shown  in 
the  Day  Book  under  date  of  May  30th.  As  this  book  involves  a  knowledge  of 
journalizing,  the  following  rules  may  aid  the  student  in  making  entries  in  the 
Cash  Book. 

Rule  1.  The  first  word  or  name,  that  we  enter  on  the  Dr.  side,  when  we  re- 
ceive any  sum,  should  be  the  name  of  the  creditor  (person  or  object)  that  we 
owe,  or  ought  to  credit,  for  the  sum  we  receive. 

Rule  2.  The  first  name  or  word  that  we  enter  on  the  Cr.  side,  when  we  pay 
any  sum,  should  be  the  name  of  the  debtor  that  owes  us,  or  that  we  ought  to 
debit,  for  the  sum  we  pay. 

H3 


DR. 


CASH. 


1868. 

Jan. 

5 

u 

5 

a 

12 

it 

19 

it 

20 

tt 

22 

it 

24 

1858. 

Jan. 
Feb. 


To  Thos.  Blanchard,  received  of  him  as  capital 

"  C.  C.  Marsh,  received  of  him  as  capital ...  . 
"   Merchandise,        received  of  S.  II.  Lovell  for  mil 

of  this  date 

"  Oliver  Otis  &  Co.,  received  of  them  on  account. .  . 
"   Merchandise,        received  for  sundry  sales  of  this 

date 

"   James  Truman,     received  of  him  for  loan  of  11th 

inst. 

"  Merchandise,         received  for  suudry  sales  of  this 

date 

Balance  on  hand 

To  William  Blakeley,  received  of  him  in  full  for  bal- 
ance of  account  of  $200 

"  Merchandise,  received  of  J.  Truman  on  bill  of 
$1,620  of  this  date 

"  Bills  Receivable,  received  for  Strang,  Adriance,  & 
Co.'s  Note,  No.  11,  discounted  . 


35,425 


00 


174 


CR. 


18S8. 

Jan. 

1 

By  Store  Fixtures,     paid  W.  Wharton's  bill 1 

$      300  1  00 

« 

14 

"   Merchandise,        paid  Rogers  &  Brothers  for  bill 

16 

of  this  date 

800  1  00 

u 

"   Merchandise,         paid  C.  Bernard  balance  of  bill 

1 

of  $3,200  of  this  date 

2,000  j  00 

<< 

11 

1,000    00 

II 

28 

"   Bills  Receivable,  paid  J.  Truman  as  a  loan  on  his 

Note,  No.  6,  at  12  months. . . . 

2,000    00 

it 

30 

"   Bills  Payable,       paid  our  Note,  No.  2,  in  favor 

of  T  P.  Cope  &  Son 

1,230 

tt 

30 

33,205 

00 

40,535 

~00 

1858 

Feb. 

2 

By  Store  Expenses,   paid   sundry   expenses,    as    per 

$        65 

00 

u 

2 

"   Bills  Payable,       paid  balance  of  our  Note,  No.  1, 

for  $1,080,  favor  H.  Austin 

525! 

u 

4 

"   Shipment  to  New  Orleans,    paid    insurance    and 
shipping    expenses    on   Invoice 
consigned  to  Lockhart  &  Arrott, 

100 

00 

tt 

12 

"   Merchandise,         paid  Haven  &  Smith  balance  of 

bill  of  $1,240,  of  this  date 

100! 

tt 

13 

"   Merchandise,        paid  freight  and  charges  on  In- 
voice received  from  W.  Howard, 

London,  per  "Washington". . . . 

422 

00 

tt 

20 

"   Walter  Howard,  paid  shipping  expenses   on  In- 

voice per  "Atlantic,"  to  his  order 

75 

00 

u 

20 

"   Walter  Howard,  paid   Insurance   on  $2,805,    at 

'6%, — Invoice  per  "Atlantic"  . 

85 

15 

It 

24 

"   Discount,              paid  on  Note  No.  11,  discounted 

31 

00 

tt 

25 

"   Schr.  Josephine,  paid  Capt.  C.  Davies  balance  of 

bill  of  $5,000,— her  cost, 

2,600 

00 

it 

26 

"   Schr.  Josephine,  paid  Wm.  Smith's  bill  for  sun- 

155 

00 

tt 

28 

"   Shipment  to  Port  au  Prince,  paid  expenses  on  In- 
voice consigned  to  H.  B.  Walker 

120 

00 

tt 

28 

"   Schr.  Josephine,  paid  Atlantic  Insurance  Comp. 

\%  premium  on  $5,000,  &  policy 

26 

00 

4,304 

T: 

tt 

28 

31,120 

53 

35,425 

To 

175 

9 


DR. 


CASH. 


1858. 

Feb. 
Mar. 

28 
3 

4 

4 

9 

10 

12 
12 
16 
18 
23 

21 
28 

To  De  Nones'  Consignment,  received  for  sundry  sales 
of  this  date 

$31,120 
456 

300 

2,610 

250 

1,233 
325 
525 
251 

2,000 

909 
440 

1 

53 

00 

"    De  Nones  Consignment,  received  of  Thomas  Mil- 
ton for  bill  of  this  date 

"    Bills  Receivable,  received  for  Oliver  Otis  &  Co.'s 

00 
00 

"    S.  H.  Lovell,        received  of  him  for  balance  of 
account  of  January 

"    De  Nones  Consignment,  received  of  L.  M.  Hoff- 
man &  Co.,  proceeds  of  sale  at 

00 

9,1 

"    Bills  Receivable,  received  for  P.   Harris's  Note 
No.  5 

"    Merchandise,       received  of  P.  Harris  for  bill  of 
this  date 

00 
00 

"    Bills  Receivable,  received  for  S.  H.  Loveil's  ac- 

31 

"    Paul  Harris,        received  of  him  for  purchases  in 
joint  account 

"    Comp.  1  Merchandise,  received  of  E.  K.  Collins  & 
Co.,  balance  of  bill  of  $3,000,  of 

00 
10 

"    Comp.  1  Merchandise,  received  of  O.  Otis  &  Co., 
balance  of  bill  of  $1,200 

"    Comp.  1  Merchandise,  received  of  Haven  &  Smith 
balance  of  bill  of  $1,250 

00 
50 

$40,481 

r\ 

1858. 

30 

1 

8 

14 
16 

18 

Balance  on  hand 

$28,181 

21 

1,440 
500 

316 

631 

33 

Apr. 

u 

11 
(1 

To  Interest,               received  on  C.  Bernard's  Note, 

No.  15,  renewal  of  No.  1 

"   Fisher's  Consignment,  received  of  H.  Burrell  & 

"    Oliver  Otis  &  Co.,  received  of  them  on  account .... 

"   Fisher's  Consignment,  received  of  P.  Harris  for 

bill  of  this  date 

00 

00 

00 

80 

<( 

"   Merchandise,        received  of  T.  Owen  &  Son  on 
bill  of  $1,831.50,  of  this  date... 

50 

_^^^ 

$31,102 

63 

116 


CR. 


3 


1853, 

Mar. 

2 
3 

7 

9 

20 

20 

25 
26 

By  Store  Expenses,  paid  sundry   expenses,  as    per 
petty  Cash  Book 

%       45 

460 

45 

4,444 

2,000 

2,000 
300 

2,400 

28,787 

or 

ti 
n 

it 

It 

"    De  Nones'  Consignment,  paid  for  Freight  aud  Du- 
ties on  Invoice  received  from  J. 
De  Nones,  Cadiz,  per  Brig  Clio 

"    De  Nones'  Consignment,  paid  for  damages  in  sales 

"    Bills  Payable,      paid  our  acceptance,  No.  8,  in 

"    Comp.  1  Merchandise,  paid  Bunker  &  Starr  for 
our  |  bill  in  joint  account  with 
P.  Harris 

00 

ou 

44 

00 

it 

it 
a 

"    Paul  Harris,        paid  Bunker  &  Starr  for  his  | 
bill  of  Flour  in   joint  account 

"    Bills  Receivable,  paid  Brown  Brothers  &  Co.  bal- 
ance of  their  Bill  of  Exchange 
of  £1,000— $4,800 

00 
00 

Of 

33 

,S 

40,481 

77 

1858. 

Apr. 

1 
1 
2 

8 
10 

11 
13 

15 

18 

By  Store  Expenses,  paid  sundry  expenses  as  per  petty 
Cash  Book 

%      162 
300 

300 
1,440 

22 
1,322 

120 

500 
245 

00 

"    Store  Expenses,  paid  Geo.  Loder  three  months' 
rent  of  Store 

00 

"    Merchandise,        paid  Freight  and  charges  on  In- 
voice received  from  Lockhart  & 
Arrott,  N.  Orleans 

00 

"    Irvine  Fisher,      paid  him  on  account 

on 

"    Joseph  De  Nones,  paid  for  damages  in  sales  on 

00 

"    Irvine  Fisher,      paid  him  on  account 

33 

"    Shipment  to  Boston,  paid  expenses  on   Invoice 
consigned  to  J.  Eaton  &  Co.  per 
Brig  Pilot 

00 

By  Thos.  Blanchard,  paid  him  on  account 

00 

"   Irvine  Fisher,       paid  him  balance  of  account. . . 

00 

4,411 

33 

23 


177 


3 


DR. 


CASH. 


Apr. 


185S. 

Apr. 
May 

30 
1 

u 

3 

<( 

6 

<« 

7 

<< 

10 

a 
it 
it 

it 

23 

28 
28 
29 

tt 

it 

30 

30 

24 

2T 

27 
27 
29 
80 

30 


May     30 


Brought 

To  Bills  Receivable,  received  balance  of  Brown  Bros. 
&  Co.'s  Bill  of  Exch.,  No.  13, 
for  £1,000,  sold, 

'  Merchandise,  received  of  J.  Pcrcival  for  trans- 
fer to  him  of  purchase  at  auc- 
tion   

'  Profit  and  Loss,  received  for  proceeds  of  Opera 
tickets 

'  Profit  and  Loss,  received  in  an  anonymous  letter 
addressed  to  us 

'  Schr.  Josephine,  received  for  Freight,  proceeds  of 
last  voyage 

'  Joseph  Ruiz,  received  for  his  Draft  on  P.  Har- 
mony's Nephews,  at  sight,  for 
$5,000— proceeds, 

'  Commission,  received  on  Draft  of  $5,000,  col- 
lected for  account  of  J.  Ruiz . . . 


Balance  on  hand 

To  Merchandise,        received  of  G.  W.  Hall  for  bill 

of  this  date 

"   Discount,  rec'd  for  premium  on  city  funds 

exchanged  

"   Merchandise,        received  of  C.  H.  Murray  for  bill 

of  this  date 

"   Bills  Receivable,  rec'd  for  O.  Otis  &  Co.'s  Note 

No.  12 

"   Merchandise,        received  of  K.  Martin  for  bill  of 

this  date 

"  Oliver  Otis  &  Co.  received  of  them  on  account. . . 
"  Henry  Austin,  received  of  him  on  account .... 
"  Chas.  Lawrence,  received  of  him  on  account .... 
"   Bills  Receivable,  rec'd  for  O.  Otis  &  Co.'s  Note 

No.  14 

"  S.  H.  Lovell,  received  of  him  on  account. . . . 
'•    Oliver  Otis  &  Co.  received  of  them  on  account. .  . 

Balance  on  hand 

178 


$31,702 

2,G22 

141 

1,700 

530 

500 

4,987 
12 


$42,197 


$26,274 

1,000 

10 

200 

707 

66 
200 
150 
167 

500 
300 
150 


29,725 


$13,952 


63 

71 

75 
00 
00 
00 

50 
50 


09 

07 

00 

50 

00 

35 

00 
00 
00 
31 

00 
00 
00 


23 
80 


CR. 


8 


1858. 

$  4,411 

33 

Apr. 

21 

By  Profit  and  Loss,  paid  for  12  Opera  tickets 

120 

00 

a 

21 
24 

"    Exchange,            paid  on  $475  uncnrrent  money. 
"   Interest,               paid  on  our  Note  No.  13,  renew- 

8 

31 

al  of  No.  9 

8 

40 

(< 

28 

"   Merchandise,        paid  expenses  on  Invoice  receiv- 

ed from  H.  B.  Walker  &  Co. 

75 

00 

(< 

30 

"   Store  Expenses,   paid  expenses  this  month,  as  per 

petty  Cash  Book 

200 

00 

a 

30 

"   H.  B.  Walker  &  Co.,  paid  A.  Belmont  for  Bill  of 
Exchange,  No.  18,  for  14,062.72 

francs  remitted  to  them 

2,643 

37 

it 

30 

"  Joseph  De  Nones,  paid  B.  Blanco  for  Bill  of  Ex- 
change, No.  19,  on  Francia  &  Co. 

for  $3,454.80,  remitted  to  him. 

3,402 

98 

II 

30 

"   Joseph  Ruiz,        paid  M.  Taylor  for  Bill  of  Ex- 
change, No.  20,  on  Drake  Bros. 
&  Co.,  for  $5,050,  remitted  to 

4,974 

88 

M 

30 

"   Exchange,            paid  premium  on  10,500  Span- 

ish dollars,  at  ^  % 

78 

75 

26,274 

07 

42,197 

09 

1858. 

May 

1 

By  Store  Expenses,  paid  as  per  petty  Cash  Book  . . 

$       75 

95 

1 

"   Discount,              paid  on  uncurrent  money  sold. . 

12 

75 

2 

"   Merchandise,        paid  B.  Ball  &  Co.'s  bill 

500 

00 

2 

"   Merchandise,        paid  A.  Thomas  &  Son's  bill . . . 

110 

50 

5 

"   Paul  Harris,         paid  his  sight  Draft,  favor  J.  Coe. 

2,500 

00 

10 

500 

00 

12 

"   William  Evans,    paid  him  on  account 

200    00 

15 

"   Thos.  Blanchard,  paid  Mrs.  Blanchard  on  his  acct. 

981  23 

15 

"   C.  C.  Marsh,        paid  J.  Eustis'  bill  on  his  acct. . . 

200 

00 

16 

"   C.  J.  Martin,        paid  him  on  account 

150 

00 

16 

"   John  Sims,           paid  him  on  account 

■/>    100 

V  10,625 

00 

23 

"   Shipment  to  San  Francisco,  paid  as  per  Day  Book 

00 

27 

"   Bills  Payable,      paid  our  Note  No.  14,  T.  Owen 

29 

&  Son 

300 

00 

"   Bills  Payable,       paid  our  Note  No.  15,  T.  Owen 

&Son 

200 

30 

"   Thos.  Blanchard,  p'd  Evans  &  Co.'s  bill  on  his  acct. 

100 

00 

30 

"   C.  C.  Marsh,        paid  J.  Rogers'  bill  on  his  acct. . 

100 

00 

Balance  on  hand 

13,952 

80 

29,725 

23 

119 


INVOICE  BOOK. 


B.  &  M. 


1858. 


Note. — In  ihis  book  are  copied  all  bills  of  goods  bought,  and  all  invoices  of 
goods  received  into  our  possession.  From  this  book  the  entries  pass  into  the 
Day  Book,  either  daily,  weekly,  or  monthly  If  weekly  or  monthly  the  wording 
or  form  of  the  Day  Book  entries  is  showD  ander  date  of  May,  in  the  Day  Book. 


181 


NEW   YORK,   JANUARY    5,    1858. 


B. 


Inventory  of  Merchandise  advanced  by  C.  C.  Marsh,  as 
Capital  : — - 

20  doz.  Snyder's  Shovels at  $7.50  $150  00 

20    "     Spades 7.50     150  00 

50  boxes  Derby  Scythe  Stones 3.25     162  50 

40  doz.  Grass  Scythes 12.00     480  00 

20    "     Corn        "        13.00     260  00 

60    "    Porter's  Patent  Balances 10.00     600  00 

200    "    common  Curry  Combs 621  125  00 

25  gross  Brittannia  Table  Spoons 5.00     125  00 

10     "  "  Tea  Spoons 2.00       20  00 

20  6  ft.  Mill  Saws 4.75       95  00 

20  6£  ft.  Cross  Cut  Saws 3.00       60  00 

30  doz.  Razor  Strops 2.00       60  00 

100  pr.  Waffle  Irons 62|     62  50 

50  doz.  Patent  Coffee  Mills 5.00     250  00 

2000  qr.-in.  Steel  Augers 06     120  00 

20  doz.  Collins'  Axes 20.00     400  00 

1£  reams  Hardware  Paper 5  00 

New  York,  January  1,  1858. 

Sifrned  C.  C.  Marsh. 


New  York,  January  14,  1858 
Messrs.  Blanchard  &  Marsh 

Bought  of  Henry  Austin, 
1  crate  common  Curry  Combs — 

100  doz at 

1  crate  patent  Curry  Combs,  100  doz. 
20  doz.  Goodyear's  patent  Pitch  Forks. 


.621 

•871 


5.50 
9.50 
7.50 


10    "  "  Manure 

5  "     Long  Shovels 

15    "     Madeira  Straw  Knives 14.00 

6  "     real  Steyre  Scythes 10.00 

6    "     common  German  Scythes 5.00 

40    "     Jack  Saws 2.75 

20  boxes  Iron  Mills 6.00 

1  cask,  50  pieces,  "Waffle  Irons 7.50 

1     "     Cutlery 


87 

110 

95 

37 

210 

60 

30 

110 

120 

37 

540 


50 
50 
00 
00 
50 
00 
00 
00 
00 
00 
50 
00 


Note  at  30  days. 


$  3,125 


00 


125 


00 


.,500 


00 


182 


NEW   YORK,   JANUARY   15s    1858. 


E. 


E. 


New  York,  January  15,  1858. 
Messrs.  Blanckard  &  Marsh 

Bought  of  Rogers  &  Brothers, 
10  boxes  Cotton  Cards,  4  doz.  each. .  .at  $5.50  $220  00 

5  "      Wool        "4         "        ...       4.00  80  00 
20     "       best  Ink 2.00  40  00 

6  cwt.  American  Blister  Steel 6.50  39  00 

250  lbs.  German  Steel 15  37  50 

100    "           "         "    14  14  00 

3  Mousehole  Anvils,  wt.  600  lbs 12±  15  00 

3  Birmingham   «         "    500    " 07  35  00 

20  gross  Gilt  Vest  Buttons 75  15  00 

40     "      Gilt  Coat         "       1.50  60  00 

10     "      Steel  Coat       "       4.50  45  00 

10     "      Steel  Vest       "       2.00  20  00 

3     "     Braces  and  Bitts 10.00  30  00 

2  doz.  Knives  and  Forks 11.25  22  50 

6    "    Rogers'  Penknives 5.00  30  00 

1    "     Knob  Locks 10.00  10  00 

1    "     32-inch  Grass  Scythes 13.50  27  00 

Received  Payment, 

Rogers  &  Brothers, 
Cash.  pr.  John  Sims. 

i 
16 


400  tierces  S.  C.  Rice. 


Bought  of  Christr.  Bernard, 

118,518    lbs.  gross.     , 
11,851       "    tare  =  10%. 


106,667       "    net   at   $3  per  C. 


Received  Payment, 

C.  Bernard, 

pr  Geo.  W.  Hall. 


m 


800 


00 


3,200 


00 


A 


3       NEW   YORK,    FEBRUARY   13,    1858 


B&M 

No.  1. 
No.  2 
No.  2. 

No.  8. 
No.  4. 
No.  5. 


E. 


Invoice  of  Merchandise  shipped  per  steamer  Washington, 
Capt.  Floyd,  consigned  to  Blanchard  &  Marsh,  New 
York,  pursuant  to  their  order  and  for  their  account, 
viz: — 

5  Cases. 

12  ps.  210  yds.  Super  Blue  Cloth,  at  20s,. .  .£210  00  00 

11"     325    "    Black  Cloth 30s,...  487  10  00 

9  "     215    "    Brown  and  Drab 

Cassimeres 10s,...  13*1  10  00 

15  "  2500     "     Ginghams Is, . . .  125  00  00 

24"     244     "     6-4  Muslin Is.  2d.  14  04  08 

20"     300     "     4-4  Muslin Is,...  15  00  00 

989  04  08 

Charges. 

Packing  Cases £3  15  02 

Duty  and  entry 12  15  06 

Cartage  and  lighterage 19  12  06 J 

Insurance  and  policy 22  04  06 

Commission 52  07  071  110  15  04 

£1100  00  00 

E.  E. 

London,  December  31,  1857. 

(Signed)                   Walter  Howard. 
Equal  to,  at  the  rate  of  4s.  6d.  per  $1 


89 


184 


SALES  BOOK. 


B;  &  M. 


Note. — In  this  book  first  appears  a  full  description  of  all  goods  sold  or  passed 
from  our  hands,  ®r  out  of  our  possession.  From  this  book  the  amounts  go  tc 
the  Day  Book,  either  daily,  weekly,  or  monthly  :  if  weekly  or  monthly,  the  form 
of  the  entry  in  the  Day  Book  is  shown  under  date  of  May  in  that  book. 

At  the  time  the  purchaser  selects  his  goods,  we  make  an  entry  in  this  book, 
showing  the  quantity,  quality,  and  price  of  the  same  ;  and  from  this  entry  we 
make  the  bill  which  we  give  the  purchaser. 


24 


185 


NEW   YORK,   JANUARY    8,    1858. 


E. 

Sold  to  Paul  Harris,  at  60  days — 
10  gro.  Allison's  Britiannia  Tea  Sp 

at  $  .68 
oons     2.121 
...       2.121 
.07 

$170  00 
21  25 
63  75 
70  00 

$      325 

500 
125 

1,200 

00 

CO 

o" 

1U 

Sold  to  William  Blakeley,  at  30  days- 
20    "     Pitch  Forks 

at  $  .07 
.871 
5.50 

$70  00 
87  50 

110  00 

95  00 

37  50 

80  00 

7  80 

10    "     Manure  Forks 

9.50 

O 

20    "     Wool  Cards 

7.50 
4.00 

i  o 

.78 

487  80 

12  20  1 

00 

LIS 

Sold  to  S.  H.  Lovell— 

at  $10.00 

5.00 

20.00 

5.00 

2.00 

Cash 

$30  00 
30  00 
40  00 
15  00 
10  00 

6  doz.  Coffee  Mills 

•9 

03 

o 

5    "             "        Tea  Spoons 

00 

ID 

Sold  to  C.  Bernard — 

15    "     Straw  Knives 

at  $24.00 
15.00 

3.00 
14.50 
10.00 

9.00 

2. 

$288  00 
225  00 
108  00 
145  00 
250  00 
180  00 
4  00 

E. 

10    "     Patent  Balances 

25    "     Patent  Coffee  Mills 

20    "    Boxes  Iron  Mills 

00 

183 


NEW   YORK,    FEBRUARY   4,   1858. 


a 


L&  A 
N.  0. 


B&M 


i:. 


Invoice  of  Hardware  shipped  per  Brig  Franklin,  Kay,  con- 
signed to  Lockhart  &  Arrott,  New  Orleans,  to  be  sold 
on  our  account,  viz.  : — 

15  Boxes — Nos.  1  to  15. 

20  doz.  Shovels at  $7.50  $150  00 

20    "     Spades 7.50     150  00 

50  boxes  Scythe  Stones 3.25     162  50 

40  doz.  Grass  Scythes 12.00     480  00 

20    "     Corn         "      6.30     126  00 

30  Patent  Balances 10.00     300  00 

20  Mill  Saws 4.75       95  00 

20  Cross-Cut  Saws 3.00       60  00 

20  doz.  Pitch  Forks 5.50     110  00 

10    "    Coffee  Mills 5.50      50  00 

55  pr.  Waffle  Irons 62|     34  47 

1  ream  Hardware  Paper 4  25 

1  722  22 

Charges.    , 

Cartage  and  labor $20  33 

Packing  Boxes 25  63 

Insurance  on  $1,768,  at  3  per  cent.,  and 

policy 54  04  $100  00 


New  York,  February  4,  1858. 


187 


1,822 


22 


COMMISSION  SALES  BOOK. 


B.  &  M. 


1858. 


Note. — This  book  contains  a  minute  description  of  the  merchandise  sold  for 
account  of  others.    The  entries  in  it  are  drawn  from  the  Sales  Book. 

From  this  book  we  make  the  account  sales  that  we  may  have  to  render  to 
those  persons  for  whom  we  have  sold  goods. 


189 


DR. 


SALES  OF  FRUIT  FOR  ACCOUNT 


18S8. 

Mar. 


14 
14 
14 


To  Cash, 


paid  Duty  aud  permit $ 

paid  Freight  and  primage 

paid  Cartage  and  labor 

C.  Lawrence,  paid  him  for  damages 

Cash,  paid  sundries  for  damages 

515  00 

Store  Expenses,  Storage,  and  Advertising 

Commission  on  $4,314,27,  at  5% 

Joseph  De  Nones,  for  amount  of  net  proceeds  due 
May  25,  1858* 


340 
108 
12 
10 
45 
52 
215 

,531 


4,314 


*  The  account-sales  which  we  render  to  Mr.  De  Nones,  made 
out  from  the  above,  and  the  calculation  for  averaging  this 
account,  to  ascertain  when  the  net  proceeds  are  due,  will  be 
found  among  the  the  Forms  and  Calculations  at  the  end  of 
the  book. 


100 


00 
00 
00 
00 
00 
24 
71 

32 


21 


OF    JOSEPH    DE    NONES,    Cadiz. 


CR, 


/ 

1358.       | 

Mar. 

<< 

<< 

a 
it 

3 
4 

4 

9 

10 
10 

By  Cash,               100  boxes  Lemons @  $3  00 

"   C.  Lawrence,     25  boxes  Oranges,  GO  ds.        3  00 

200  jars  Olives 50 

"   Cash,               100  boxes  Oranges  3  00 

"   S.  H.  Lovell,     25  boxes  Lemons,  90  ds.        3  00 

"   Cash,  at  Auction — 

150  boxes  Lemons 0  $5,00  $750  00 

110  boxes  Oranges 3,80    418  00 

220  jars  Olives 50    110  00 

$      300 

156 

75 

100 

300 

75 

75 

1,233 
2,000 

0(. 
00 

00 
on 
00 
00 
00 

1,278  00 

27 

By  Merchandise,  4,000  jars  Olives,  4  mos.  . .  CC  .50 

00 

4,314 

27 

191 


s\  \^ 


A 


* 


A 


9 


DR. 


SALES    OF    MERCHANDISE    IN    JOINT 


1858. 

Mar. 

20 

To  Cash,               paid  for  800  barrels  Flour,  CD  $5  == 

$4,000.     Our  one  half 

$  2,000 

OC 

k 

21 

"   Paul  Harris,  received  of  him  500  bbls.  Flour,  £8 

$4,75  =  $2,315.     Our  one  half  .. 

1,187 

50 

a 

30 

"   Storage,         on  1,300  bbls,  -Q)  3  cts.  per  month 

39 

00 

a 

80 

"    Commission,    on  $7,850,  ffi  2£  % 

196 

25 

it 

30 

"   Paul  Harris,  his  half  of  net  proceeds,  due  May 

3,  1858* 

3  807 

37 

it 

30 

"   Profit  and  Loss,  our  half  net  gain 

619 

88 

7,850 

00 

*  The  calculation  for  averaging  this  account,  to  ascertain 

when  the  net  proceeds  are  due,  will  be  found  among  the  Cal- 

culations, at  the  end  of  the  hook. 

DR. 


SALES    OP    COFFEE    FOR 


1858. 

April 

3 

a 

3 

n 

16 

tt 

16 

16 

Charges — 
Labor  $6.00 
Storage  on 
Commission  on 
Balance, 


Invoice  of  300  Bags  = 

46,819  lbs $3,375  00 

Advertising  $6.00 

300  bags  1  mo.  CD  2  cts 

$4,680,©2-|% 

Net  proceeds  due  April  20,  1858. . 


92 


00 


ACCOUNT    WITH    PAU 


IARRIS 


fn^fiX 


CR. 


9 


1SR8. 

Mar. 

14 
U 
M 

23 
26 

27 
28 

By  Cash,                    500  bbls.  Flour, 0  $6  25 

"  Bills  Receivable,  400  bbls.  Flour,  60  ds  .        6  00 

"   Sundries,             200  bbls.  Flour 6  00 

"  Merchandise,       200  bbls.  Flour    3  mos.       6  00 

$  3,000 
2,400 
1,200 
1,250 

00 
00 
00 
00 

7.850 

oc 

Note. — The  Account  sales  made  out  from  the  above,  tor 
rendering  to  Mr.  Harris,  is  among  the  Forms,  at  the  end  of 
book. 

ACCOUNT    OF    IRVINE    FISHER. 


CR. 


1858. 

April 

6 

6 

8 

13 

15 

16 

By  S.  H.  L., 
"   O.  O.&Co., 
"  H.B.&Co., 
"  B.  &  M., 
"  T.B. 
"  P.  Harris, 

75  bags,  13,500  lbs.  0  10  cts.  Cash. 
50  bags,    8,100  lbs/0  10  cts.  10  ds. 
100  bags,  14,400  lbs.  0  10  cts.  Cash . 
50  bags,    7,200  lbs.  0  10  cts.  60  ds. 
3  bags,       432  lbs.  010  cts.  Cash . 
22  bags,    3,168  lbs.  0  10  cts.  Cash . 

$  1,350 

810 

1,440 

720 

43 

316 

00 
00 
00 
00 

20 
80 

300  bags,  46,800  lbs. 

19  "  waste. 

46,819 

4,680 

00 

193 

MERCANTILE    FORMS. 


FORM  OF  BILL  OF  EXCHANGE, 

(From  transnotbn  of  Fsb.  16.) 
_ ^qy      jy 

Exch.  for  $4,444.44.  ^    &  London,  February  1st,  1858. 

Twenty  days  after  sight  of  thissFir^fc  of  Exchange  (Second  and  Third  un- 
paid), Pay  to  the  Order  of  Louis  ^apj^r,  Esq.,  Four  thousand,  Four  hundred, 
and  Forty-four  44/]00  Dollars,  valu&reoilved,  and  charge  the  account,  per  advice,  of 

Y    ^  Your  obedient  servant, 

To  Messrs.  Blanchard  &  Marsh,  Walter  Howard. 

Merchants.  New  York,  TJ.  S. 


FORM  OF  DRAFT. 

(From  transaction  of  Feb.  13.) 

$251.8T/ioo  &         New  York,  February  13th,  1858. 

Thirty  days  after  date  pay.  jb  the  order  of  Messrs.  Blanchard  &  Marsh, 
Two  hundred  and  Fifty-one  8T^»  Dollars,  value  received,  and  charge  the  same  to 
account  of  Your  obedient  servant, 

To  S.  H.  Lovell,  William  Blakeley. 

Merchant,  New  York. 


194 


BILL  BOOK. 


B.  &  M. 


1858. 


Note. — In  this  book  all  notes,  drafts,  acceptances,  and  bills  of  exchange  in 
our  favor  or  against  us,  are  first  entered.  This  book  supplies  us  with  the  dates, 
the  names,  the  time  or  credit,  the  time  when  due,  and  amounts  of  all  papei 
claims  against  us  or  in  our  favor,  without  referring  to  the  documents  themselves 


195 


BILLS 


No.     DRAWN  AT 


1 

2 

3 

4 

5 

6 

1 

8 

9 

10 

11 

12 

13 

14 

15 

16 

n 

18 
19 

20 

21 
22 
23 

24 


N.York. 

Boston. 

N.York. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 


DATES. 


Jan.    4,  1858. 

Dec.  31,  1851. 

Jan.  10,  1858. 

"     19,  " 

"       8,  " 

"     28,  " 

Feb.   4,  " 

"     13,  " 

"     21,  " 

"     23,  " 

"     24,  " 

Mar.  5,  " 

"     26,  " 

u      yf,  " 

April  1,  " 

"     11,  " 

Jan.  11,  " 

Apr.30,  " 

"     30,  " 

"     30,  " 


Boston. 
N.York. 

do. 

do 


May  16,  " 

"     15,  " 

"     20,  " 

•i     2*1,  " 


DRAWN  BY 


Christopher  Bernard  . 
T.  Perkins  &  Co.  . . . 
William  Blakelcy .... 
Oliver  Otis  &  Co.  ... 

Paul  Harris 

James  Truman 

Christopher  Bernard  . 
William  Blakeley .... 
Christopher  Bernard  . 

James  Truman 

Strang,  Adriance&  Co 
Oliver  Otis  &  Co.... 
Brown,  Brothers  &  Co. 
Oliver  Otis  &  Co. . . . 
Christopher  Bernard  . 

S.H.Lovell 

Irvine  Fisher 

A.  Belmont  ........ 

B.  Blanco  

Moses  Taylor 


ox  WHOM 


Oliver  Otis  &  Co. 


S.H.Lovell. 


Brown,  Shipley  &  Co. 


J.  Eaton  &  Co . . 
A.  G.  Beck  . . . . 
W.  F.  Mott,  Jr. 
A.  Aranguran  . . 


Francia  &  Co 

Drake  Brothers  &  Co. 


Eajrle  &  Hazard. 


196 


RECEIVABLE. 


WHOSE  FAVOR. 

Thomas  Blanchard  . 

C.  C.  Marsh 

Blanchard  &  Marsh 

do. 

do. 

Paul  Harris 

Blanchard  &  Marsh 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

do. 

T.  Owen  &  Son 

H.  B.  Walker  &  Co. 
Blanchard  &  Marsh. 
Joseph  Ruiz 


TIME. 


Blanchard  &  Marsh 
do. 
do. 
do. 


90  days. 
GO  days. 
30  days. 
30  days. 
60  days. 
12  mos. 

6  mos. 
30  days. 
60  days. 
60  days. 
90  days. 
60  days. 
20  ds.  s't 
60  days. 
60  ds.  s't 

4  mos. 

3  mos. 
60  ds.  s't 
15  ds.  s't 
30  ds.  s't 


DUE. 


60  days. 
4  mos. 
3  mos. 
6  mos. 


April  7, 1858. 
Mar.    4,     " 
Feb.  12,     " 
Feb.  21,     " 
Mar.  12,     " 
Jan.  31,1859. 
Aug.    1,1858. 
Mar.  18,     " 
Apr.  25,     " 
Apr.  27,     " 
May  28,     " 
May*    7,     " 

£1000 
May  29,1858. 
June    9,     " 
Aug.  14,     " 
Apr.  20,     " 
fr.  14,062.73 


July  18,1858. 
Aug.  18,     " 
Aug.  23,     " 
Nov.  30,     " 


AMOUNT. 


$2,000 

2,670 

500 

1,000 

325 

2,121 

320 

251 

800 

500 

2,000 

707 

4,444 

500 

2,000 

1,350 

1,200 

2,643 

£3,454 

5,050 

554 
352 
415 
611 


197 


00 
(10 
00 
00 
00 
00 
00 

81 

00 
00 
00 
35 

44 

00 
00 
00 
00 
37 
80 
08 


REMAKE. 


Renewed  by  No.  15. 

Paid  Mar.  4, 1858. 

Charg'd  to  W.Blake- 
ley  Feb.  12,  1858. 
Passed  to  Haven  & 
Smith,  Feb.  12,  '58. 

Paid  Mar  12,  1S58. 


Taid  Mar,  1C,  1858. 

Pass'd  Wilmerdingfc 
Mount,  April  20, '68. 
Pass'd  Wilmerdinjr/te 
Mount,  April  20, 68. 
Discounted  Feb.  24, 
1858. 

Paid  May  7,  1858. 
Sold  April  24, 1858. 
Paid  May  29,  1858. 


Pass'd  April  20,  58. 

Remitted  to  H.  B. 
Walker  &  Co.  Ap.  30. 
Remitted  to  J.  Da 
Nones,  Apl.  30,  '58. 
Remitted  to  J.  Ruiz, 
April  30,  1858. 


BILLS 


No. 

DRAWN  AT 

DATES. 

DRAWN  BY 

J.  Eaton  &  Co 

C.  C.  Marsh 

JN  \\Hii\l 

1 

2 

Boston. 
N.  York. 

do. 

do. 

do. 

do. 

do. 
London. 
N.York. 

do. 

do. 

do. 

do. 

Dec.  27,  1857. 

Oct.  29,     " 

Jan.  16,  1858. 
"     14,     " 

Feb.  13,     " 
"     13,     " 
"     13,     " 
"     16,     " 
"     21,     " 

<<         9>T           tl 
w  '  ) 

"     28,     " 

Apr.20,     " 

«     24,     " 

Thomas  Blanchard  . .  . 

S 

Blanchard  &  Marsh . . 

do. 

do. 

do. 

do. 

Walter  Howard 

Blanchard  &  Marsh  . 

do. 

do. 

do. 

do. 

4 

6 

6 

7 

8 
9 

Blanchard  &  Marsh . . . 

10 

11 

12 

13 

14 

N.York, 
do. 
do. 
do. 
do. 
do. 
do. 

May  4,  1858. 
«       6,     " 
"     15,     " 

*  20,     " 

*  25,     " 

*  26,     " 
"     28,     " 

Blanchard  &  Marsh . . 
do. 
do. 
do. 
do. 
do. 
do 

V 

15 

16 

n 

18 

19 

20 

>  , 

198 


PAYABLE. 


WHOSE  FAVOR. 

time. 

DUE. 

AMOUNT. 

REMARKS. 

T.  P.  Cope  &  Son.... 
Rogers  &  Brothers . .  . 

do. 
do. 

Christopher  Bernard . . 
J.  R.  Dallett  &  Co.  . . 
Phoenix  Insurance  Co.. 
Wilmerding  &  Mount . 
Christopher  Bernard . . 

60  days. 
90  days. 
90  days. 
30  days. 
12  mos. 
12  mos. 
12  mos. 
20  ds.  s't 
60  days. 
60  days. 
90  days. 
4  mos. 
60  days. 

Feb.  28,  1858. 
Jau.  30,     " 
Apr.  19,     " 
Feb.  16,     " 
Feb.  16, 1859. 
Dec.  16,     " 
Feb.  16,     " 
Mar.  11, 1858. 
Apr.  25,     " 
May    1,     " 
June    1,     " 
Aug.  23,     " 
June  26,     " 

$1,080 

1,230 

2,100 

1    1,500 

407 

407 

407 

4,444 
800 

2,190 
81 

2,033 
800 

300 
200 
2,019 
401 
320 
630 
270 

00 

00 

00 

00 

40 

41 

41 

44 

00 1 

00 

56 

33 

00 

00 
00 

01 
25 
00 

00 
00 

i 

I 
J 

Paid  Feb.  2,  1858. 
Taid  Jan.  30,  185S 
Paid  Mar.  23,  1858. 
Paid  Feb.  17,  1858 

Paid  Mar.  9, 1858 
Renewed  by  No.  13 
Paid  April  24, 1858 

T.  Owen  &  Son 

do. 
Paul  Harris 

20  days. 
20  days. 

3  mos. 
7  mos. 

4  mos. 
6  mos. 
3  mos. 

May  27,  1858. 

"      29,     " 
Aug.  18,     " 
Dec.  23,     " 
Sept.  28,     " 
Nov.  29,     " 
Aug.  31,     " 

• 

Paid  May  27, 1858 
Paid  May  29,  1858 

Atlantic  Mutual  Ins.  Co. 
Trujillo  &  Barreiras  . . 
Harmony's  Nephews . . 
Spofford,  Tileston  &  Co. 

199 


MERCANTILE    FORMS 


Copies  of  the  Notes  advanced  by  the  Partners  as  Capitals — From  transaction  oj 

January  5. 


$  2,000.  %oo.  New  York,  January  4,  1858. 

Ninety  days  after  date,  I  promise  to  pay  to  the  Order  of  Thomas  Blanchard, 

Two  thousand  Dollars  for  value  received. 

Christr.  Bernard 

Due  April  T,  1SS8. 

Endorsed  to  the  firm  by  Thomas  Blanchard. 


$  2  G70  V    .  Boston,  December  31,  1857. 

~Sixty  days  after  date,  pay  to  the  fifller  of  C.  C.  Marsh,  Two  thousand  Six 
hundred  and  Seventy  Dollars,  value^received,  and  charge  to  the  account  of 

a.   Your  obedient  servants, 
To  Messrs.  Oliver  Otis  &$$!,  T.  Perkins  &  Co. 

Merchants,  New  York. 
Endorsed  to  the  firmly  C.  C.  Harsh. 


200 


MERCANTILE 


FORMS  AND  CALCULATIONS, 


viz. : 


RECEIPTS. 

ORDERS. 

PROMISSORY  NOTES. 

ENDORSED  NOTES. 

DRAFTS. 

BILLS  OF  EXCHANGE. 

ACCOUNTS  SALES. 

ACCOUNTS  CURRENT, 

LETTERS. 


DISCOUNT  AND  INTEREST. 

COMMISSION. 

INSURANCE. 

EXCHANGES- 
FRENCH, 
ENGLISH,  &c. 

EQUATION  OF  PAYMENTS 

AVERAGING  BALANCES. 

PROFITS  AND  LOSSES. 


26 


201 


202  MERCANTILE     FORMS. 

RECEIPT  FOR  PAYMENT  OF  A  BILL. 

,r<,,:™,,ctioaofJun.T.)  J^    y^   January    T>    ^Q 

Received  of  Messrs.  Blanchard  &  Marsh,  Three  hundred  Dollars,  in  full  for 

bill  of  store  fixtures,  of  this  date. 

Geo.  W.  Wharton. 


RECEIPT  FOR  A  NOTE. 

From  transaction  of  Jan.  22.* 


$1,500.  %oo  NeVTork,  January  22,  1850 

Received  of  Messrs.  Blanchard  &  Marsh,  their  note  at  thirty  days,  dated 

14th  inst.,  for  One  thousand  five  hundred  Dollars.  j|  i 

Henry  Austin. 


PROMISSORY  NOTE— on-demand. 

'From  transaction  of  Jiui    5./ 

$140.  °/100  New  York,  January  4,  1850. 

On  demand,I  promise  to  pay  to  the  order  of  C.  C.  Marsh,  One  hundred  and 

Forty  Dollars  ;  value  received. 

Charles  Lawrence. 


PROMISSORY  NOTE. 

(From  Unntaet'on  cf  Jan.  10.) 


$500.  %oo  ^EW  York,  January  10,  1858. 

Thirty  days  after  date,  I  promise  to  pay  to  the  order  of  Blanchard  &  Marsh, 

Five  hundred  Dollars  :  value  received. 

William  Blakeley. 

Due  Feb.  11,  1858. 


ENDORSED  NOTE-^wm  interest. 

-~4f  (From  traniaetion  of  Jan.  K.) 

-  ~ *•% 

$2,121.  °/ioo  '^EW  York,  January  28,  1858. 

Twelve  months  after  date,  I  promise  touay  to  the  order  of  Paul  Harris, 
Two  thousand  One  hundred  arid  Twenty-one  JJ&Hari^Vvalue  received. 

James  Truman. 

Do*  Jan.  31,  1859.  -^ 

Note,— As  P.  Harris  is  the  endorser  in  this  note,  his  aameSSfould  be  on  the  back  of  it 
He  may  endorse  specially  or  simply-specially,  by  writing  "  Fay/to  the  order  of  Blanchard 
&  Marsh  ;"  simply,  by  merely  writing  his  name.  M* 


7 


MERCANTILE    FORMS.  20S 

PROMISSORY  NOTE. 

_^_^__^_^__  (From  traoMolloaof  Ji.u-.ii.>  ...) 

$1,500.  %oo  New  York,  January  14,  1858. 

Thirty  days  after  date,  we  promise  to  pay  to  the  order  of  Henry  Austin, 
One  thousand  and  Five  hundred  Dollars :  value  received. 

Du*  Feb.  16,  Utt.  BLANCHARD    &    MARSH. 


[No.  1.]  BILL  OF  EXCHANGE. 

(From transaction of  Peb.  .'.) 

Exch.  for  £500  stg.  New  York,  February  25,  1858. 

Sixty  days  after  sight  of  this  our  first  of  exchange  (second,  third  and  fourth, 
of  same  tenor  and  date,  unpaid),  pay  to  the  order  of  Capt.  Caleb  Davis  Five 
hundred  Pounds  sterling,  value  received,  and  charge  the  same  to  account  of 

Your  Obedient  Servt's., 
To  Walter  Howard,  Blanch ard  &  Marsh. 

London. 

Note. — The  above  is  one  of  the  set.    A  bill  of  exchange  consists  of  three  or  four  drafts, 
in  order  to  expedite  the  forwarding  and  collecting  ;  one  being  paid,  the  others  become  null. 

DRAFT. 

A»"  (From  transaction  of  fan.  5.  ) 

$1,080.  7,00  c>^  .^  Boston,  December  25,  1857. 

c.    ^ 

Sixty  days  after  sight,  pay  to  thg^ord^r'  of  Henry  Austin,  One  thousand  and 
eighty  Dollars,  value  received,  and  cjwirgfythe  same  to  our  account. 

To  Thomas  Blanchard,  „<^  *<$?  Joseph  Eaton  &  Co. 

NewYork.^    <v 

V 

DRAFT  AT  SIGHT. 

^^  (From  transaction  of  Aul.  U  I 


$310.  °/I00  jf   $'        New  York,  April  14,  1858. 

At  sight,  without  grace,  pay  t&  tKp"  order  of  Blanchard  &  Marsh,  Three 
hundred  Dollars  value  received,  and"  charge  the  same  to  our  account. 

To  Irvine  Fisher,  Esq.,        «£*  ^  Oliver  Otis  &  Co. 

NewYTjrk. 

AN  ORDER. 

(From  transaction  of  Mir.  'i  J.; 


$288.  7ioo  New  York,  March  2,  1858. 

Messrs.  Blanchard  &  Marsh  will  please  deliver  to  the  order  of  W.  Blakeley 
such  goods  as  he  may  choose,  to  the  amount  of  Two  hundred  and  Eighty-eight 
Dollars,  and  charge  the  same  to  Charles  Lawrence. 


204 


MERCANTILE     FORMS 


Account    Sales  of  Invoice  of  Fruit  received  per  Brig  "Clio,"  sold  bi 
order  and  for  account  of  Joseph   De   Nones,   Cadiz, — 


by    Blanchard   &    Marsh 


10 


100  boxes  Lemons, ...  ©  $3.00    cash $300  00 

52  boxes  Oranges, 3.00      "    156  00 


25  boxes  Oranges, 3.00    60  days ...     7500 

200  jars     Olives,  .50    60    "    ...   100  00 


100  boxes  Oranges, 3.00    cash 

25  boxes  Lemons, 3.00    90  days. . .     15  00 

25  boxes  Oranges, 3.00    90    "    . . .     75  00 


150  boxes  Lemons, 5.00    cash 750  00 

110  boxes  Oranges, 3.80     "    418  00 

220  jars     Olives, 50      "    110  00 


Sold  at  auction 1,278  00 

Auctioneer's  commission  3|  % 44  73 


4000  jars  Olives ©  .50,  4  mos 


Charges. 


Duties  and  permit $340  00 

Freight  and  primage 108  00 

Cartage  and  labor 12  00 

Refunded  for  damages 55  00 

Storage  and  advertising 52  24 

Commission  on  $4,314.27,  @  5% 215  71 


Net  proceeds,  due  May  25,  '58* , 


E.  E. 

New  York,  March  14,  1858. 

Blanchard  &  Marsh, 

Per  John  Sims. 


*  Note. — The  sales  in  this  account  being  made  on  different 
terms  and  at  different  times,  a  calculation  is  necessary  in  or- 
der to  ascertain  when  the  net  proceeds  will  be  due  :  the  ac- 
count must  be  "  averaged."  The  calculation  will  be  found 
under  the  head  of  "  Equation  of  Payments,"  at  the  end  of  [ 
the  book — example  5. 


456 

175 
300 
150 


1,233 
2,000 


4,314 


782 


3.531 


MERCANTILE    FORMS. 


205 


AccouNiSALKSof  1,300  barrels  Flour,- 


1853. 

Mar. 


Sold  in  joint  account  with  Paul   Harris, 


by  Blanc  hard  &  Marsh, 


28 


500  barrels  Flour, 0  $6.00    cash 

400       "         "        6.00    60  days 

ooo       «         "  6.00    60  days   $500  00 

Cash...   100  00 


200 


«       3  months 


Charges. 


Storage  on  1,300  bbls.  1  mo.,  0  3  cts $  39  00 

Commission  on  $7,850,  0  21% 1 96  2o 


Net  proceeds,  due  May  3,  '58.* 


Of  which  your  half  is  (due  May  3,  1858.) 


New  York,  March  30,  1858. 

Blanchard  &  Marsh, 

Per  John  Sims. 


Note.—*  The  calculation  required  to  average  this  Account 
sales,  to  ascertain  at  what  date  the  net*  proceeds  will  fall  due, 
will  be  found  among  the  "  Calculations,"  at  the  end  of  the 
book — example  4. 

t  Errors  excepted. 


3,000  j  00 
2,400  I  00 

I 
1,200  j  00 

1,250  00 


7,850. 


235 


00 


25 


7,614 


3,807 


75 
31 


206 


Dr. 


MERCANTILE    FORMS.      . 

Charles    Lawrence    in    Accou.ni 


1658. 

Jan. 

5 

2 
4 

To  Balance  due  C.  C.  Marsh 

$      140 
288 
175 

00 

Mar. 

it 

To  your  draft  at  sight,  in  favor  of  William  Blakeley . 
To  Merchandise,  per  bill  rendered 

00 
00 

^—^^^ 

$     603 

00 

1858. 

April 

20 

To  Balance 

$      165 

00 

Note. — The  above  is  an  Account  current  of  the  most  sim- 
ple class,  being  without  interest.    It  is  made  out  from  the 
Leger,  referring  by  the  dates  to  the  entries  in  the  Day  Book, 
for  such  explanations  of  the  sums  as  may  be  thought  neces- 
sary. 

The  following  is  the  same  account  made  out  with  interest. 

Dr. 


Charles   Lawrence   in  Account 


DATES. 

03 

< 

INTEREST. 

AMOUNTS. 

1858. 

Jan. 
Mar. 

n 
Apl. 

5 
2 

4 
30 

To  Merchandise,  per  your  order  at 

sight,  iu  favor  of  W.  Blakeley  . . 

To  Merchandise,  per  bill  rendered . . 

To  Balance  of  Interest,  at  6  % ... . 

115 

59 
57 

$  2 

2 
1 

68 

83 
66 

17 

$      140 

288 
175 

2 

00 

00 
00 
31 

^-^^ 

$     605 

> 

31 

1858. 

Apl. 

30 

To  Balance 

$     167 

31 

Note. — The  purchases  and  sales  of  mer- 
chandise in  the  above  account  current  are 
supposed  to  be  without  credit  or  time ; 
consequently  we  count  the  days  from  the 
dates  of  the  purchases  and  sales  up  to  the 
day  on  which  we  make  the  account  (April 

MERCANTILE    FORMS 

Current   with   Blanchard   &   Marsh. 


Cr. 


207 


1S5I. 

Feb.  J  12 

"     '■  21 


Mar. 
April 


7 
30 


By  our  draft  at  sight,  in  favor  of  Haven  &  Smith 

By  Merchandise,  per  bill  rendered 

By  allowance  on  bill  of  4th  inst 

By  Balance 


E.  E. 


New  York,  Apl.  30,  1858. 


$ 

140 

00 

288 

00 

10 

00 

165 

00 

$ 

603 

oc 

Current   with    Blanchard   &   Mars: 


Cr. 


DATES. 

03 

% 
o 

n 

62 
54 

INTEREST. 

AMOUNTS. 

1858. 

Feb. 

12 

27 

7 

30 

30 

By  our  draft  at  sight,  in  favor  of 
Haven  &  Smith 

$    1 

2 

2 

80 
97 
09 
31 

$      140 

288 
10 

167 

00 

CI 

Mar. 
April 

By  Merchandise,  per  bill 

By  allowance  on  bill  of  4th  inst  . . . 
By  Balance  of  Interest 

00 
00 

April 

31 

$  7 

17 

$     605 

31 

E.  E. 

New  York,  Apl.  30,  1858. 

30).     Great  care  must  be  taken  not  to 
calculate  interest  where  it  is  not  owed. 
If  a  sum  is  not  due  on  the  date  of  the  en- 
try, the  explanation  should  show  when  it 
is  due. 

208  MERCANTILE    FORMS. 

Dr.  Thomas  Blanchard  in  Accouni 


DATES. 

CO 

> 
< 

a 

INTEREST. 

AMOUNTS. 

1S53. 

Jan. 

April 

<< 

5 

15 
15 
30 
30 

To  your  Acceptance  in  favor  of  H. 

Austin,  due  Feb.  28,  1858 

To  Cash 

61 
15 
15 

10 

1 

493 
505 

98 
25 
10 
66 

99 

$    1,080 

500 
43 

26,870 

OC 
00 

To  Balance  of  Interest 

20 

u 

To  Balance 

46 

$28,493 

66 

E.  E. 

New  York,  Apl.  30,  1858. 

MERCANTILE     FORMS. 

Current    with    Blanchard  &  Marsh.  Cr. 


209 


DATES. 


1S58. 

Jan. 


April 


1658 

April 


5 

5 

30 


By  Cash, 

By  C.  Bernard's  Note,  due  April  1, 

1858. 
By  Balance  of  Interest  at  6%. . . . 


115 


30 


By  Balance. 


INTEREST. 


498    33 


66 


505 


99 


AMOUNTS. 


526,000 

2,000 
493 


$28,493 


$26,8t0 


00 

00 
G6 


66 


46 


27 


210  MERCANTILE    FORMS. 

Dr.  Christ r-    C.    Marsh    in    Accouni 


DATES. 

TO 

< 

o 

INTEEST. 

AMOUNTS. 

1853. 

Jan. 
Mar 

5 

25 
30 

30 

To  your  Note  in  favor  of  T.  P.  Cope 

&  Son,  due.  Jan.  30,  1858 

To  Cash 

90 
36 

18 

1 

291 

45 
80 
69 

$  1,230 
300 

16,702 

00 
00 

u 

Apl. 

6S 

311 

94 

18,232 

69 

E.  E. 

New  York,  Apl.  30,  1858. 

Notk. — An  Account  current  is  a  state- 
ment which  we  often  have  occasion  to  ren- 
der to  persons  with  whom  we  have  been 
doing  business.    It  is  intended  to  explain 
to  the  person  to  whom  it  is  rendered,  how 
his  account  stands  in  our  books,  and  to 
show  what  balance  is  due  him  or  us. 

MERCANTILE    FORMS.  211 

Current   with  Blanchard   &    Marsh.  Cr. 


DATES. 

CO 

>* 

< 
a 

INTEREST. 

AMOUNTS. 

1858. 

Jan. 

5 
5 

By  Oliver  Otis  &  Co.'s  acceptance, 

115 

230 

loo 

$12,000 

1 
j 

00 

due  March  4,  1858 

5? 

25 

37 

2,670 

00 

11 

5 

115 

59 

89 

3,125 

00 

II 

5 

By  Charles  Lawrence's   balance  of 

i 

115 

2 

68 

140 

00 

April 

30 

By  Balance  of  Interest  at  6  % 

311 

94 

297 

69 

18,232 

69 

;s5S. 
April 

30 

16,702 

69 

There  are  three  ways  of  making  out 

these  accounts,  which  are  used  according 

to  circumstances  : — 

1st.  A  simple  statement  of  the  account 

"  without  interest. " 

t 

2d.  A  statement  of  the  account,  with 

interest  calculated  on  each  sum. 

3d.  A  statement  of  the  account,  showing 

; 

by  "  average "  when  the  balance 

L— 

was  or  will  be  due. 

The  above  account  belongs  to  the  second 

class.    It  is  made  out  for  one  of  the  part- 

ners, in  order  to  ascertain  the  amount  of 

interest  on  his  capital,  under  the  supposi- 

tion that  the  partners  were  to  be  allowed 

interest  on  their  respective  capital. 

The  balance  of  interest  in  this  account 

( $  297.69 )  is  carried  to  the  Day  Book 

(April  30),  journalized,  and  posted  to  the 

accounts  in  the  Leger.     The  account  of 

the  other  partner  shows  a  balance  of  in- 

terest of  $  493.66. 

212  MERCANTILE    FORMS. 

Dr.  Paul    Harris    in    Accouni 


DATES. 

B 

< 
a 

INTEREST. 

AMOUNTS. 

1858. 

Jan. 

Mar. 

Apl. 
<< 

8 

20 

15 
SO 

30 

To  Merchandise,  tt  60  days,  per  bill 

rendered,  due  March  12,  '58  . . 

To  Cash,  paid  your  \  bill  of  Flour 

49 
41 

$  2 

13 
1 
6 

24 

65 

67 
90 
67 

89 

$     325 
2,000 

5,001 

00 
00 

April 

54 

$  7,326 

51 

E.  E. 

New  York,  Apl.  30,  1858. 

Note. — The  above  balance  of  interest 
($6.67)  is  carried  into  the  Day  Book,  but 
journalized  and  posted  wrong  in  order  to 
afford  an  example  of  correcting  a  class  of 
errors  that  require  Day  Book  and  Journal 
entries  to  correct  them.     The  correction 
in  this  case  is  made  by  the  last  entry  un- 
der date  of  May. 

MERCANTILE    FORMS. 

Current     with    Blanchaed  &  Marsh.  Cr. 


213 


DATES. 


1858. 

Jan. 

21 

Mar. 

18 

<< 

21 

<< 

30 

April 

30 

1858. 

April 

30 

By  your  Note,  at  60  days  from  8th, 
due  March  12,  1858. 

By  Cash 

By  our  |  bill  of  Flour  in  joint  ac- 
count with  you 

By  your  \  net  proceeds  of  sales  in 
joint  account,  due  May  3,  '58. . 

By  Balance  of  Interest,  @  6  %  . . . 


By  Balance. 


Note. — The  above  account  shows  a  sum 
on  the  credit  ($3,807.37)  which  is  not  due 
until  May  3d,  being  3  days  after  the  date, 
on  which  we  make  the  account — April  30 ; 
the  interest  on  which,  therefore,  must  be- 
long to  the  debtor  side.  When  such  is  the 
case  we  must  calculate  the  interest  from 
now  until  the  time  the  sum  is  due,  and  write 
the  days  and  interest  in  "  red  ink ;"  and 
before  adding  the  interest  columns,  we 
must  make  an  entry,  of  the  red  ink  inter- 
est on  the  debtor  side. 


49 
43 

40 


INTEREST. 


!  2 
14 


24 


65 
33 

91 
90 


89 


AMOUNTS. 


325 

2,000 

1,187 

3,807 
6 


00 
00 

50 

37 

67 


$  7,326 


$  5,001 


54 


54 


214  MERCANTILE     FORMS. 

Dr.  Paul    Harris    in    Account 


1853 

Jan. 

Mar. 

Apr. 


20 
30 


To  Merchandise,  at  60  days,  per  bill  rendered , 
To  Cash,  paid  for  your  \  bill  in  joint  account  , 
To  balance  due  April  22,  1858 


E.  E. 

New  York,  April  30,  1858. 


Note. — The  above  is  an  account  current  "  averaged."    The 
one  preceding  is  the  same  account  made  up  with  interest. 


325 
2,000 
4,994 


$  7,319 


00 
00 

87 


87 


MERCANTILE     FORMS. 

Current     with    Blanchard&  Marsh.  Cr. 


215 


1858. 

Jan. 
Mar. 


1858. 

April 


21 

18 

21 
30 


30 
80 


By  your  Note,  due  March  12,  1858 

By  Cash 

By  our  \  bill  of  Flour  in  joint  account  with  you 

By  your  \  net  proceeds  of  sales  in  joint  account  due 
May  3,  1858 

By  Balance  due  April  22,  1858 

By  Interest  from  April  22  to  date — 8  days 


Note. — The  above  account,  and  the  preceding,  are  accounts 
current  made  out  for  the  same  person,  with  a  view  to  exem- 
plify two  of  the  common  methods  of  drawing  off  an  account 
current,  viz. :  one  with  interest  calculated  on  each  sum,  and 
the  other  by  averaging  to  find  "  when "  its  balance  is  due. 
The  one  averaged  shows  a  balance  due  April  22  ;  now  calcu- 
late and  allow  interest  on  this  balance  from  April  22  to  the 
30th  (the  date  to  which  the  other  account  is  made  up),  and  the 
balances  of  the  two  accounts  will  agree — both  showing  a  sum 
due  Mr.  Harris,  at  30th  April,  of  $5,001.54. 

The  calculation  of  averaging  this  account  will  be  found  un- 
der the  head  of  "Equation  of  Payments" — example  8. 


325 

2,000 


00 
00 


1,187 
3,801 


%   1,319 


4,994 
6 


5,001 


81 

81 
61 

54 


LETTEKS. 


Note. — It  is  necessary  to  preserve  copies  of  all  our  business  letters  ;  for  this 
purpose  a  letter  book  is  kept. 

Subjects  of  the  following  letters : — 

No.  1. — Circular  on  commencing  business 

"    2. — On  ordering  Goods. 

"     3. — On  consigning  Goods. 

"    4. — On  rendering  Account  Sales. 

"     5. — On  drawing  a  Draft. 


216 


MERCANTILE    FORMS.  2H 

[CIRCULAR.]  ^r: 

New  York,  January  5,  1858. 
Sir:— 

We,  the  subscribers,  respectfully  announce  to  you  that  we  have  formed 
a  copartnership  under  the  firm  of  Blanchard  &  Marsh,  for  the  prosecution  of  a 
general  commission  and  wholesale  business  ;  and  we  take  the  liberty  of  assuring 
you  that  all  business  intrusted  to  our  care,  shall  receive  from  us,  personally, 
prompt  and  faithful  attention.  Having  friends  and  correspondents  at  numerous 
commercial  points,  we  possess  facilities  not  often  enjoyed  by  new  establishments. 
We  are  prepared  to  make  liberal  advances  on  consignments. 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 

Thomas  Blanchard  will  sign — 
Christr.  C.  Marsh  will  sign — 

Reference  s  : — 

Messrs.  Moses  Taylor  &  Co New  York. 

"      Thomas  Owen  &  Son " 

'■      Watson  &  Meares "        " 

"      Noriega,  Olma  y  Ca Havana. 

"      Brown,  Shipley,  &  Co.. .  .Liverpool. 
"      Hargous  Brothers Yera  Cruz. 


•28 


218  MERCANTILE    FORMS 


New  York,  January  5,  1858. 
Mr.  Walter  Howard, 

London. 
Dear  Sir  :  Please  accept  our  order  for  forwarding  to  us  per  first  vessel, 
the  annexed  list  of  dry  goods  of  various  patterns  and  of  good  quality  ;  for  the 
amount  of  which  you  may  draw  at  thirty  or  sixty  days'  sight. 

We  contemplate  consigning  to  you,  about  the  first  of  February,  an  invoice  of 
Rice  and  Pearl  Ashes,  relative  to  which  we  solicit  advice. 

Having  commenced  a  general  commission  business,  (per  our  circular)  we  beg 
leave  to  solicit  your  favors,  and  pledge  our  honors  as  merchants,  for  the  strict  ob- 
servance of  your  commands,  and  faithful  performance  of  our  duty. 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 


MERCANTILE    FORMS.  219 


New  York,  February  4,  1858. 
Messrs.  Lockhart  &  Arrott, 

New  Orleans. 
Gentn.  :  Enclosed  we  remit  to  you  Bill  of  Lading  and  invoice  of  Hardware, 
amounting  to  $1,822.22,  which  we  consign  to  you  per  Brig  Franklin,  to  be  sold 
for  our  account.     You  will  do  us  the  favor  to  use  all  possible  despatch  in  making 
sales  and  rendering  account. 

We  wish  you  to  make  returns  for  the  above  in  sea-islands  Cotton  ;  you  will 
therefore,  without  further  advice,  invest  the  net  proceeds  as  soon  as  realized  ia 
that  article,  selected  with  your  accustomed  intelligence,  and  at  the  lowest  market 
price. 

Keep  us  well  informed  of  the  state  of  your  market ;  we  expect  much  business 
in  that  direction,  and  from  the  high  esteem  in  which  we  hold  your  house,  shall 
place  as  much  as  possible  under  your  care,  expecting  no  less  from  you. 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 


MERCANTILE     FORMS 


New  York,  March  14,  1858. 
Mr.  Joseph  De  Nones, 
Cadiz. 
Dear  Sir  :  Enclosed  you  will  find  account  sales  of  your  consignment  of 
Fruit,  per  Brig  Clio  :  Net  proceeds  due  May  25,  1858,  $3,531.32.    When  your 
Fruit  arrived,  prices  were  very  low,  as  appears  by  the  first  sales  ;  but  a  sudden 
demand  arose,  and  we  think  we  studied  your  interest  by  disposing  of  the  remain- 
der at  auction. 

We  await  your  further  orders,  grateful  for  those  received,  and  remain 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 


New  York,  February  25,  1858. 
Mr.  Walter  Howard, 

London. 
Dear  Sir  :  We  have,  under  this  date,  drawn  a  bill  on  you,  at  sixty 
days'  sight,  in  favor  of  Capt.  Caleb  Davis,  for  five  hundred  pounds  sterling  (£500 
stg.),  which  you  will  please  accept,  and  oblige 

Your  obedient  servants, 

Blanchard  &  Marsh. 


No    fi. 

New  York,  April  30,  1858. 
Mr.  Charles  Lawrence, 

Philadelphia. 
Dear  Sir  :  Annexed  we  present  your  account  current,  with  interest  cal- 
culated to  this  date,  showing  a  balance  in  our  favor  of  $161.01  ;  for  which 
amount,  if  you  find  correct,  please  remit  us  a  sight  draft. 

Very  respectfully, 

Your  obedient  servants, 

Blanchard  &  Marsh. 


MERCANTILE    CALCULATIONS.  221 


DISCOUNT  AND  INTEREST. 

Interest  is  a  certain  sum  charged  for  the  use  of  money  ;  it  is  always  calcula- 
ted by  the  100.  Six  per  cent.  (6%)  signifies  $6  for  the  use  of  $100  for  one  year 
(or  one  month,  if  so  agreed).  Seven  per  cent.  (7%)  means  $7  for  the  use  of 
$100  during  one  year,  or  7  cents  for  the  use  of  100  cents  for  a  year.  Therefore, 
by  multiplying  any  sum  by  the  rate  per  cent.,  and  dividing  the  products  by  100, 
we  obtain  the  interest  on  that  sum  for  one  year.  And,  having  the  interest  for 
one  year,  we  may  take  of  it — 

i    for 6  months. 

i    for .' 4  months. 

i    for 3  months. 

■i    for 2  months. 

-Jy  for 1  month. 

Example  1. 
What  is  the  interest  on  $2,000  for  one  year  and  three  days  (the  grace),  at  6% 

per  annum  ?  (From  transaction  of  Jan.  98.) 

Note. — To  find  the  interest  on  any  number  of  dollars  for  a  year  is  the  same 
simple  calculation  as  to  find  the  amount  of  any  number  of  things  at  6  or  7  cents 
each  ;  2,000  books  at  6  cents  each,  would  amount  to  $120  ;  so  the  interest  on 
$2,000  for  one  year  at  6  cents  each,  would  amount  to  $120. 

Rule  (for  years).  Multiply  the  sum  by  the  rate  per  cent,  (here  it  is  6),  and 
divide  by  100  ;  the  quotient  will  be  the  interest  in  dollars,  if  the  original  sum  be 
dollars,  but  if  the  original  sum  be  dollars  and  cents,  the  quotient  will  be  the  in- 
terest in  cents. 

$2,000 

6 

$120.00  Interest  for  one  year,  one  hundred 
'  and  twenty  dollars. 

Rule  (for  days).  Multiply  the  sum  by  the  number  of  days,  and  divide  the 
product  by  6  ;  the  quotient  will  be  the  interest  in  mills,  or  in  hundredths  of  mills 
if  the  sum  be  dollars  and  cents. 

$2,000 

3_ 

Divisor  6)       6,000 


$1,00,0  Interest  for  3  days,  1  dollar. 


Cufoff  one  figure  for  mills,  and  two  for  cents  ;  the  rest  will  be*  dollars.     The  in- 
terest, then,  on  $2,000  for  3  days  is  $1,00,  and  for  one  year  and  3  days  $121.00. 


222  MERCANTILE     CALCULATIONS. 

Example  2. 
What  is  the  interest  on  $1,080  for  26  days,  at  6  per  cent,  per  annum  ? 

(From  transaction  of  Feb.  3., 

$1,080 

26 

6480 

2160 

Divisor  6)       28080 

4,68,0  Interest  for  26  days,  $4.68. 

Example  3. 
What  is  the  interest  on  $250  for  33  days,  at  6  per  cent,  per  annum  ? 

(From  transaction  of  Feb.  13.) 

$250 

33 

750 
150 
Divisor  6)     8250 

1,37,5"  Interest  for  33  days,  $1.37|. 

Example  4. 
What  is  the  interest  on  $3,469.32  for  25  days,  at  6  per  cent,  per  annum  ? 

(From  4th  transaction  of  April 30.) 

$3,469.32 

25 

1734660" 

693864 

Divisor  6)     8673300 

14,45,5,50  Interest  in  hundredths  of  mills — • 
:        equal  to  $14.45. 

Although  the  rate  of  interest  may  vary  from  6  per  cent.,  this  method  can  still 
be  used.  First  find  the  interest  at  6  per  cent.,  as  in  the  preceding  examples, 
and  then — 

Add. . . .}  of  itself for     7  per  cent. 

Add I  "     "      8  per  cent. 

Add \  "     "      9  per  cent. 

Add I  "     "     10  per  cent. 

Subtract  £  "     "      5  per  cent. 

Subtract  \  " "      4  per  cent. 

Thus —      Divide  by  6)     $14.45  Interest  at  6  per  cent. — (Example  4.) 

2.41         "      at  1  per  cent. 
16.86        "      at  7  per  cent. 

Note. — This  method  of  multiplying  by  the  days  and  dividing  by  6,  although 
generally  used,  is  not  exactly  correct ;  it  gives  7\  part  more  than  the  exact  inter- 
est, because  the  rule  supposes  a  year  to  be  360  days. 


MERCANTILE    CALCULATIONS.  223 

The  error  is  corrected  by  deducting  -^\  (about  1|  cents  on  each  dollar  of  interest) 
of  the  interest  so  found,  from  itself.     Thus,  in  Example  2 — 

The  interest  is  $4.68 

Which  divide  by  73  6 


4.62  exact  interest. 


Note  2.— The  divisor  "  6000,"  or  "  6,"  is  used  in  calculating  interest  for  days 
at  6  per  cent.,  on  account  of  the  facility  it  gives  in  dividing  by  so  simple  a  num- 
ber ;  but  it  does  not  follow  that  7  is  the  divisor  for  interest  at  7  per  cent.,  nor 
5  for  5  per  cent. 

The  divisor  6000  is  found  thus  :  When  we  compute  interest  for  one  year  at  6 
per  cent.,  we  always  multiply  by  6  and  divide  by  100  ;  therefore,  dividing  by 
360  times  100,  (36000)  will  give  the  interest  for  one  day  ;  and  in  order  to  save 
multiplying  by  6,  we  divide  by  }  of  36000,  which  is  6000 — multiplying  by  6,  and 
dividing  by  36000,  produces  the  same  result  as  dividing  by  6000.  If  we  divide 
any  sum  by  6000,  we  obtain  the  interest  on  it  for  one  day  at  the  rate  of  6  per 
cent,  per  annum,  and  that  interest  multiplied  by  any  number  of  days,  will  be  the 
interest  for  that  number  of  days  ;  but  to  avoid  a  loss  in  fractions,  we  multiply 
first  and  divide  after. 


COMMISSION. 


Commission  is  a  sum  charged  by  a  person  for  doing  business  for  another — for 
buying  or  selling  goods,  collecting  or  paying  money,  &c,  &c. 

Commission  is  always  calculated  by  the  100,  and  has  no  reference  whatever 
to  time.  5  per  cent,  signifies  $5  for  every  100,  or  5  cents  on  every  100  cents,  or 
5  cents  for  every  dollar.  The  calculation  is  the  same  that  is  required  to  find  the 
amouut  of  any  number  of  articles  at  2*  or  5  cents  each. 

Example.  1. 

What  is  the  commission  on  $2,805,  at  2|  per  cent.?  (Or,  what  will  2,805 
books  amount  to,  at  2|  cts.  each  ?)  (Flom  traction  of  Feb.  20.) 

Rule. — Multiply  the  sum  by  the  rate  per  cent.,  and  divide  the  product  by  100 
— that  is,  if  the  sum  be  dollars,  cut  off  two  right-hand  figures  ;  if  the  sum  be 
dollars  and  cents,  cut  off  four. 

$2805 

J  f'r  s^ 

&<-  14021 

CfO  J  O  $70.12$  Commissioaon  $2,805,  at  2& 


Example  2. 
What  is  the  commission  on  $4,314.27,  at  5  per  cent.  ? 


(From  transaction  of  Marth  14.) 

$4314.27 
5 


215,71,35  Commission,  $215.71. 


* 


■* 


224  MERCANTILE    CALCULATIONS. 

INSURANCE, 

Insurance  is  a  sum  charged  for  guaranteeing  the  safety  of  property  from  th6 
dangers  of  sea  or  of  fire.  In  case  the  property  insured  is  lost,  the  insurers  pay 
the  value  that  it  was  insured  for,  to  the  holder  of  the  policy. 

A  policy  of  insurance  is  a  certificate  or  agreement  which  one  receives  from  an 
insurance  company,  when  he  gets  property  insured. 

Insurance  is  calculated  by  the  100,  in  the  same  manner  as  commission. 

Example  1. 
What  is  the  insurance  on  (or  the  premium  for  insuring)  $2,805,  at  3  percent.  ? 

(From  transaction  of  Feb.  20.) 

$2,805 
_3 
84.15  Premium  of  insurance,  $84.15 
■  Charge  for  the  policy,       1.00 
85.15 


It  is  customary,  in  insuring  shipments,  to  insure  for  10  per  cent,  more  than  the 
cost  of  the  goods  at  the  place  where  they  are  shipped. 

What  are  called  open  policies  are  given  by  insurance  companies  to  those  who 
have  frequently  to  get  shipments  insured.  An  open  policy  is  a  policy  larger  than 
the  common,  on  which  entries  of  property  insured  are  made  from  day  to  day.  A 
note  is  given  to  the  insurance  company  for  a  supposed  amount  of  premiums,  and 
when  the  note  becomes  due,  the  amount  of  premiums  is  ascertained  and  deducted 
from  the  amount  paid  for  the  note,  and  the  balance  returned  to  the  holder  of  the 
policy. 

EXCHANGE. 

Exchange  treats  of  the  values  of  different  moneys,  and  of  changing  sums  of 
one  kind  of  money  to  another  kind  without  altering  their  values. 

In  some  cases,  foreign  money  should  be  calculated  at  its  par  or  intrinsic  value  ; 
in  others,  at  a  premium,  or  at  a  discount. 

The  importer  of  an  invoice  of  goods  changes  the  amount  of  the  invoice  into  his 
money  at  the  par  value,  and  credits  the  person  from  whom  he  received  the  goods 
for  the  same.  But  if  he  buys  a  draft,  or  bill  of  exchange,  by  which  to  make  a 
remittance,  he  may  then  pay  more  or  less  than  the  par  value  of  the  sum  for  which 
the  bill  is  drawn  :  this  more  or  less  is  the  premium  or  discount,  which  varies  ac- 
cording to  the  trade  between  the  two  places.  This  premium  or  discount  is  called 
the  rate  of  exchange. 

TABLE. 

Nominal  value.    Intrinsic  value. 

£1  stg.  (20  s.  or  40  sixpences) equals  $4.44,4 $4.84+ 

1  shilling "  .22,2 24+ 

6  pence "  .11,1 12 

4  s.  6  d.  (or  9  sixpences) "         1.00,0 1.09 

Example  1. 
What  is  the  par  value,  in  dollars  and  cents,  of  £1,100  stg.  ? 

(From  transaction  of  Feb  13.) 


MERCANTILE    CALCULATIONS.  225 

Rule. — Multiply  the  pounds  by  40,  to  reduce  them  to  sixpences  ;  annex  two 
ciphers,  and  divide  by  9 — the  number  of  sixpences  in  a  dollar  ;  the  result  will  be 
dollars  and  cents. 

£1100 
40 

9)  44000.00 

$4,888.89— value  of  £1,100  stg.,  at  the  nomi- 
nal par  value. 

Note. — The  present  true  or  intrinsic  value  of  £1  stg.  is  nearly  $4.84  ;  but  the 
old  or  former  par  value  ($4.44)  is  generally  used  in  accounts.  The  $4.44  was 
the  par  value  of  a  pound  sterling  previous  to  the  adulteration  of  the  gold  coin 
of  the  United  States  (1834,)  and  that  nominal  value  continues  in  use,  the  differ- 
ence being  made  up  under  the  name  of  exchange  or  premium.  When  exchange 
on  England  is  said  to  be  at  8  or  9  per  cent,  premium  in  New  York,  it  is  in 
reality  only  about  par — the  premium  being  calculated  on  the  $4.44,  the  former 
value,  instead  of  the  present. 

Example  2. 

What  is  the  value  of  £20..  10. .6,  in  dollars  and  cents,  at  par  ? 

Rule. — Reduce  the  sum  to  sixpences,  add  two  ciphers,  and  divide  by  9. 
Thus— 

£20..10..6 
40 

800— sixpences  in  £20. 

20—       "        in  10  s. 

1—       "        in   6d. 


9)  821.00 
$91.22 

Example  3. 
What  is  the  amount  of  a  bill  of  exchange  drawn  for  £500  stg.,  at  8  per  cent. 

premium  ?  (From  transaction  oi  Feb.  25. 

Rule. — Calculate  the  value  at  par,  as  in  example  1,  and  then  add  the  pre- 
mium. 

£500 
40 

9)  20000.00 

$2222.22  Value  at  par..  $2222.22 
111.18  Premium.  8 


$2400.00  Ans.  177.71.76 


Example  4. 

I  wish  to  invest  exactly  $3,650,  funds  in  my  hands  belonging  to  a  correspon- 
dent, in  a  draft  on  New  Orleans  ;  for  what  amount  should  the  draft  be  drawn, 
supposing  the  exchange  at  3  per  cent,  discount,  to  cost  that  sum  ? 

29 


226  MERCANTILE     CALCULATIONS. 

Rule. — Multiply  the  sum  to  be  invested  by  100,  and  divide  by  the  number  of 
cents  you  allow  for  $1. 

$8650 
100 
97)  365000($3762.88  Amount  of  the  draft. 
112.88  Discount,  3  %  off. 
3,650.00  Cost  of  the  draft. 


Example  5. 
The  party  that  sold  the  above  draft  on  New  Orleans  for  $3,762.88,  at  3  per 
cent,  discount,  made  merely  this  calculation  : — 

$3762.88 

3  per  cent,  discount. 
112.88.64  discount. 
Discount  on  the  draft  $112.88. 

Example  6. 
I  wish  to  invest  exactly  $5,000  in  a  bill  of  exchange  on  Liverpool ;  for  what 
amount  will  the  bill  be  drawn,  to  cost  that  sum — exchange  at  9  per  cent,  pre- 
mium ? 

Rule. — Multiply  the  sum  to  be  invested  by  100,  and  divide  by  100  with  the 
premium,  annexing  two  ciphers  to  obtain  cents  ;  or,  divide  by  the  amount  which 
you  give  for  $1. 

100     $5000 

9  100 

109  )  500000($4,587.15  Ans.  in  dollars  and  cents. 
Now  change  the  $4,587.15  to  sterling  :  Multiply  by  9  and  divide  by  40. 

$4587.15 

9_ 

40)  41284.35 

£1032,11     Pounds  and  hundredths. 

20 

s.        2,20     Shillings  and  hundredths. 
12 


d.  2,40    Pence  and  hundredths. 

£1032.. 2. .2.  Ans. 

Example  7. 

Imported  invoice  of  goods  from  Havre,  amounting  to  12,750  francs  ;  for  what 
amount  shall  I  credit  the  shipper  in  dollars  and  cents  ? 
Rule. — Multiply  the  francs  by  the  par  value  of  a  franc — 18f  cents. 
Fr.  12,750 

18? 


102000 

Fr. 

12,750 

12750 

3 

2295.00 

5) 

38250 

76.50 

76.50 

$2,371.50 

Ans. 

MERCANTILE    CALCULATIONS.  227 

Example  8. 

Bought  a  bill  of  exchange  on  Havre  for  the  amount  of  the  above  invoice 
(12,150  francs),  exchange  at  fr.  5.30  :  what  shall  I  pay  for  the  bill,  in  dollars 
and  cents? 

Rule. — Divide  the  amount  of  the  bill  by  the  number  of  francs  and  hundredths 
allowed  for  $1,  annexing  ciphers  to  obtain  cents. 

5.30)   12,750.00.00($2,405.66  Arts. 
Xote. — It  will  be  seen,  by  comparing  this  with  the  preceding  question,  that 
when  the  exchange  on  France  is  at  fr.  5.30,  it  is  at  a  premium  ;  because— 
12,150  francs,  at  fr.  5.30,  make  $2,405  66 
12,750     "       at  par  (18|)  "       2,371  50 

Loss  by  exchange .  . .         34  16 

Example  9. 
Bought  a  bill  of  exchange  on  Paris,  drawn  for  14,062.73  francs— exchange  at 

fr.   5.32  per  dollar  ;    What  Will  it  COSt  ?  (From  transaction  of  AprU30.) 

Rule. — Divide  the  amount  of  the  bill  by  the  amount  of  French  money  allow- 
ed for  $1,  which,  in  this  question,  is  5TVo  fr 

5.32)14,062.73.00($2,643.58  Ans. 

Example  10. 
I  wish  to  invest  $4,987.50  in  a  bill  of  exchange  on  Havana — exchange  at  1| 
per  cent,  discount ;  what  amount  will  the  bill  be  drawn  for,  allowing  me  \  per 
cent,  commission  for  buying  the  bill  ?  (From  tran.acti0n  0f  APni3o.) 

Instruction.  Divide  the  amount  to  be  invested  by  the  number  of  cents  allow- 
ed for  $1  (98|  cts.  are  allowed  for  a  dollar).  If  the  exchange  be  1|  per  cent, 
discount,  for  every  98|  cents  we  get  a  dollar  in  the  bill. 

But  as  we  charge  \  per  ct.  commission,  we  add  that  to  the  98|,  which  makes 
the  divisor  98  f. 

.98.75)4,987.50.00.00($5,050.63 

The  bill  will  be  drawn  for $5,050  63— which 

At  1|  per  cent,  discount 75  75 

Will  cost 4,974  88 

Add  our  commission,  at  \  per  cent 12  62 

Making  the  sum  we  wished  to  invest 4,987  50 


EQUATION     OF    PAYMENTS. 

Equation  of  Payments,  or  averaging,  is  a  calculation  to  ascertain  at  what  date 
Beveral  sums,  due  at  different  dates,  may  be  paid  in  one  payment,  so  that  neither 
payer  nor  receiver  may  gain  or  lose  in  time  or  interest. 

An  equation  of  payments  is  proved  by  a  calculation  of  interest ;  for  the  inter- 
est on  the  sums  due  before  the  average  date,  should  equal  the  interest  on  the 
sums  due  after. 


228  MERCANTILE    CALCULATIONS. 

The  following  examples,  it  is  believed,  embrace  all  the  different  cases  of  avera- 
ging—beginning with  the  simplest. 

Example  1. 
Sold  merchandise  to  Mr.  Austin  as  follows  ;  when  is  the  amount  due  ? 

Ans.  May  21. 

May  6,  bill  of $50  00 

"  9,   "  75  00 

"15,   "  80  00 

"27,   "  120  00 

"30,   "  150  00  ' 

Rule  1. — To  find  the  average  date  of  the  preceding  bills  :  Multiply  each  sum 
by  the  number  of  days  from  its  date  to  the  date  of  the  first  sum,  and  divide  the  amount 
of  the  products  by  the  amount  of  the  sums. 

Thus—  $50     X     0    =        0 

75     X     3     =     225 

80     X     9     —    120 

120     X  21     =  2520 

150     X  24     =  3600 

475  _^_       )  1065  (15  days  after  May  6. 

If  these  sales  to  Mr.  Austin  were  at  6  or  4  months'  credit,  the  4  months'  credit 
on  the  total  would  begin  at  May  21. 

Example  2. 
Sold  merchandise  to  Mr.  Harris  as  follows  ;  when  is  fhe  total  due  ? 

Calcplatiox. 

May  10,  bill  of $40  00  X     0  =        0 

"    15,       " 65  38  X     5  =    325 

"    27,       "   90  50  X  17  =1,530 

"    30,       "   120  40  X  20  =2,400 

June  6,        "   50  20  X  26  =  1,300 

"  20,       "   110  90  X  40  =4,400      . 

"25,        "   ..148  00   X  45  =  6,660 

$625  38         625)  16,615  (26  ds.  after  May  10. 

The  total  falls  due  June  6,  that  being  26  days  after  May  10.  But  if  there, 
had  been  a  credit  of  4  or  6  months  on  these  bills  of  goods,  then  the  credit  would  begin 
en  June  6,  and  the  amount  be  due  4  or  6  months  after  that  date. 

Example  3. 
Sold  merchandise  to  Mr.  Sims  on  the  following  dates  and  credits ;  when  will 
the  amount  be  due  ? 

Julv     1,  bill  at  3  months,  $400  X     94  =  37,600 

5       "      4        "         500  X  128  =  64,000 

"     10       "      4         "        500  X  133'  =  66,500    . 

"     20       "      6         "       1500  X  203  =304,500 

Aug.  10       "      3         "         200  X  133  =  26,600 

"     20       "    60  days,         100  X  H3  =  11,300 

Sept.  ,15       "    90         "        250  X  168  =  42,000 

3450        -4-     )  552,500  (160  days  after  July  1. 
V  =  = 

tr 


MERCANTILE    CALCULATIONS.  229 

This  case  differs  materially  from  Examples  1  and  2,  because  the  sales  are  on 
different  terms — one  being  at  4  months,  another  at  3  months,  &c. 

Rule. — Multiply  each  sum  by  the  number  of  days  that  it  will  be  due,  counting 
from  July  1  (the  date  of  the  first  sum),  and  divide  by  the  amount  of  the  original 
sums  ;  the  quotient  will  be  the  number  of  days  after  July  1,  that  the  amount  will 
be  due.     The  multiplier  (128)  in  the  above  calculation  is  obtained  thus  : — 

From  July  1  to  the  5th, 5  days. 

4  months, 120     " 

Grace, 3     " 

128  days  from  July  1, 
that  the  $500  has  to  run  before  due. 

Example  4. 
Calculation  of  averaging  the  account  sales  rendered  to  Mr.  Harris,  March  30, 
copied  from  page  189  : — 

Terms.  Calculation. 

March  23 cash,      $3,000  X  0  = 

"       26 60  days,  2,400  X  66  =  158,400 

"       27 60  days.     500X67=     33,500 

"       27 cash,           700  X  4=      2,800 

"       28 3mos.,     1,250  X  98  ==  122.500 

7,850 

Less  charges 235 

Divide  by  net  proceeds ,7,615     -^       )  317,200  (41   days  after 

March  23 — equal  to  May  3. 

Rule. — Multiply  each  sum  by  the  number  of  days  that  it  wants  of  being  due, 
counting  from  the  first  date  (March  23),  and  divide  by  the  net  proceeds  ;  the 
quotient  will  be  the  number  of  days  that  the  proceeds  will  fall  due  after  the  date 
averaged  from — March  23. 

Example  5. 
Calculation  of  averaging  the  account  sales  rendered  to  Mr.  De  Nones — copied 
on  page  188  : — 

Terms. 

March  3 cash,         $  456 

"      4 60  days,       175 

"      4 cash,  300 

"       9 90  days,      150 

"     10 cash,         1,233 

"     10 4  months,  2,000 

4,314 

Less  charges 783 

Divide  by  net  proceeds 3,531     -~     )  294,981  (84  days  after 

March  3 — equal  to  May  25. 

Rule. — Multiply  each  sum  by  the  number  of  days  from  the  first  date  (March 
3)  to  the  date  when  it  will  be  due,  and  divide  by  the  net  proceeds  ;  the  quotient 
will  be  the  number  of  days  after  the  first  date  (March  3)  that  the  net  proceeds 
will  be  due. 

Note. — Dividing  by  the  net  proceeds,  as  above,  extends  the  time  in  propor- 
tion to  the  charges  which  we  consider  due  March  3 — the  date  we  average  from. 


Calculation. 

X    o 

= 

X  64 

=  11,200 

X     1 

=       300 

X  99 

=  14,850 

X     7 

=    8,631 

X130 

=260,000 

230 


MERCANTILE     CALCULATIONS 


But  supposing  the  charges  due  much  before  or  after  that  date,  we  should  then 
multiply  them  by  the  number  before  or  after,  and  add  the  product  to,  or  deduct 
it  from,  the  dividend  to  be  divided  by  the  net  proceeds.  If  the  charges  were  due 
before  the  date  we  average  from  (March  Z),  the  said  dividend  should  be  in- 
creased ;  if  after,  decreased. 

If  we  divide  by  the  total  sales,  we  must  put  another  item  among  the  charges, 
viz. :  interest  on  the  amount  of  the  charges  from  the  date  they  average  due  up 
to  the  time  total  sales  average  due  ;  which  method  is  not  truly  averaging  the 
account,  but  averaging  a  part  of  it  and  charging  interest  on  the  rest. 


Example  G. 
When  is  the  balance  of  the  following  account  due  ? 
Dr.  John  Sims. 


Cr. 


1858. 

June 


To  amount  due  us  this 
date 


100 


00 


00 


1358. 

May 


Byamt.  due  him  this 

daterr ^ 

By  bal.  due  Aug.  IT. 


200 


TOO 


00 
00 


00 


Ml 


Rule. — (Always  calculate  from  the,  date  of  the  larger  side,  calling  that  the  debt 
and  the  other  side  the  payment  on  account  of  it.)  Multiply  the  sum  of  the  smaller 
side  by  the  number  of  days  that  intervene  between  its  date  and  the  date  of  the 
larger  side,  and  divide  by  the  balance  of  the  account ;  the  result  will  be  the 
number  of  days  before  or  after  the  date  of  the  larger  side,  that  the  balance  will 
be  due.  31     days  from  May  1  to  June  1. 

500  from  credit  side. 
Balance.  .200)  15,500  (7T  days  after  June  1  ;  equal  to  Aug.  IT. 
For  the  reason  that  the  $500  was  paid  31  days  before,  the  debt  was  due  (June 
1),  the  balance  (200)  does  not  become  due  until  TT  days  after  June  1.     Or  thus  : 
If  one  pays  $500,  31  days  before  it  is  due,  how  long  ought  that  to  extend  his 
credit  on  $200  ? 

Ans.  fll  of  31  days,  which  is  TT  days. 

Example  T. 
When  is  the  balance  of  the  following  account  due  ? 

Dr.  Francis  F.  Ripley.  Cr. 


Jan. 
Feb. 
Mar. 
Apr. 


To  Merchandise,  at  6mos 
To         "  at  6    " 

To         "  at  6    " 

To         "  at  6    " 


Amount  due  Sept.  2. 


$50000 
30000 
400  00 
300  00 


1500 


OH 


1958. 

Mar. 
Apr. 
June 


By  Cash 

By  Cash 

By  Note  due  Aug.  1 

Amount  due  June  5 . 
Bal.  due  Feb.  27/ '59. 


$200 
300 
500 


1000 
500 


1500 


00 
00 
(10 


00 
00 

00 


MERCANTILE     CALCULATIONS 


231 


Average  each  side  of  the  account  separately  (as  shown  in  example  2),  to  find 
when  the  total  of  each  is  due  ;  the  account  will  then  be  in  situation  of  example  6. 

Rule. — Multiply  the  amount  of  the  smaller  side  by  the  number  of  days  that 
intervene  between  the  day  on  which  it  is  due  and  the  day  on  which  the  larger 
side  is  due,  and  divide  the  product  by  the  balance  of  the  account ;  the  quotient 
will  be  the  number  of  clays  that  the  balance  will  be  due  after  or  before  the  date 
of  the  larger  side. 

89         days  from  June  5  to  Sept.  2. 
1,000  amount  of  credit  side. 

Balance  $500)  89,000  (178  days  after  Sept.  2  ;  equal  to  Feb.  ST. 

The  amount  of  the  debtor  side  is  due  Sept.  2  ;  the  $1,000  on  the  credit  side 
was  paid  on  account  of  the  $1,500,  89  days  before  it  was  due  ;  therefore 
the  balance  of  $500  will  fall  due  1*19  days  after  Sept.  2.  Or,  if  $1,000  is  paid 
89  days  before  the  debt  was  due,  how  long  ought  that  to  extend  the  credit  on 
the  $500  still  owing  ? 

Am.  l°oV  (or  y)  of  89  days — equal  to  118  days. 


Example  8. 
When  is  the  balance  of  the  following  account  due  ? 
Dr.  Paul  Harris. 


Cr. 


1858. 

Jan. 
Mar. 

Apl. 


ToMdse.  due  March  12 
To  Cash 

2,325  00 

To  Balance  due  Apl.  2%. 
1858..; 


00 

2000100 


/ 

1994 


7319 


1SJ8. 

Jan. 
Mar. 


By  Note  due  Mar  12 

By  Cash 

By  Merchandise . . . 

By  net  proceeds  due 

May  3 


$325 
2000 
1187 

3807 


7319 


00 
00 
50 

31 

87 


Average,  separately,  both  sides/of  the  account,  in  manner  of  Example  5.  The 
debtor  side  ($2,325)  will  be  due'March  19  ;  the  credit  side  ($7,319)  will  be  due 
April  11.  Thus,  then,  we  owe  Mr.  Harris  $7,319,  due  April  11  ;  on  which  we 
have  paid  him  $2,325,  due  March  19-»r-leaying  a  balance  in  his  favor  of  $4,994. 
Now,  as  we  paid  him  $2,325,  23  daysJk/ore  what  we  owed  him  was  due,  it  follows 
that  our  credit  on  the  balance  shouiobe  extended  in  proportion  as  the  amount 
paid  is  to  the  balance  owed  ;  thaiis^r|M|-  of  23  days  after  April  11— -Apl.  22. 


PROFITS    AND    LOSSES. 


Example  1. 

Bought  an  article  for  $5,  and  sold  it  for  $6  ;  at  what  rate  per  cent,  was  the 
gain  ? 


232  MERCANTILE     CALCULATIONS. 

"Rule. — Multiply  the  gain  or  loss  by  100,-  and "d wide  the  product  by  the  cost 

Gain $1 

100 

Cost 5)  100(20  per  cent.  Ans. 

10 

0 

Example  2. 

Bought  50  chests  Tea  for  $4,125,  and  sold  the  same  for  $4,866.15  ;  at  what 
rate  per  cent,  was  the  gain  ?  ra  tt(ineaction  of       2 

Sold  for $4,866.15 

Cost 4,125.00 

Gain 141.15 

100 

4,125.00)  14115.00  (3  per  cent.  gain.  Ans. 
Example  3. 

Sales  of  merchandise  the  last  four  months  amount  to  $24,619  ;  the  cost 
$21,056  ;  what  per  cent,  is  the  profit  ? 

Sales $24,619 

Cost 21,056 

Gain 3,563 

100  -At 

21,056)  3563.00  (16.92  r 

Ans.  Sixteen  ank  -ffc  per  cent. 

Example  4. 

Sales  of  merchandise  this  year  amount  to  $55,660  ;  supposing  the  profits 
average  12  per  cent.,  how  much  is  the  gain  ? 

Rule. — Multiply  the  amount  of  sales  by  100,  and  divide  the  product  by  100 
with  the  rate  per  cent,  added  ;  the  quotient  will  be  the  cost,  which  deducted  from 
the  sales  will  give  the  gain. 

$55,660 

100    $55,660.00  sales. 

112)  55,66000  (  49,696.43  cost. 

5,963.51  gain. 


THE     END. 

■^  — — 

A    CARD. 

Marsh's  Counting  Rooms, 
FOR    PRACTICE    AND    INSTRUCTION    IN 

BOOK-KEEPING,   AND    BUSINESS   AFFAIRS. 

No.  348  Broadway,  New  York 
Circulars,    with    Terms,    remitted    to    applicants. 


> 


YC  91609 


-(. 


'--U: 


*JWii&*fc'8r1 


